Rent-A-Center will be acquired by Vintage Capital for approximately $1.36 billion in a deal that values the company’s stock at $15 per share. Vintage will take the retailer private after the transaction closes.
Vintage had offered to purchase Rent-A-Center for $13 per share in fall 2017, then increased its offer to $14 per share last week, according to Dallas News. The latest offer was unanimously approved by the Rent-A-Center Board.
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Rent-A-Center experienced net losses of $12.6 million in Q3 2017, spurring a review of strategic and financial alternatives. Additionally, CEO and Founder Mark Speese stepped down in January 2018, with former President and COO Mitchell Fadel named to his position.
Vintage has experience in the rent-to-own industry as the parent company of Buddy’s Home Furnishings, which operates 302 locations. Rent-A-Center operates approximately 2,400 stores in the U.S., Mexico, Canada and Puerto Rico, as well as 1,250 Acceptance Now kiosk locations in the U.S. and Puerto Rico.
