Rent-A-Center Board Approves Sale To Vintage Capital
Rent-A-Center Inc (NASDAQ: RCII) shares were halted in pre-market trading Monday on news that the board unanimously approved a sale to Vintage Capital for about $1.365 billion including debt.
Why It’s Important
Rent-A-Center stockholders would receive about $15 in cash per share at the end of the transaction, which represents a 49-percent premium to Rent-A-Center’s price ahead of its pursuit of strategic alternatives. The board began exploring options in October 2017.
The sale to the privately held Vintage Capital will take Rent-A-Center off the public markets and unite it with the Vintage-controlled Buddy’s Home Furnishings.
"We believe that the combination of Rent-A-Center, Buddy's and Vintage is a compelling opportunity to utilize our resources and expertise to enhance value and create a leader in the rent-to-own industry,” Brian R. Kahn, managing member and founder of Vintage Capital, said in a press release.
What’s Next
The deal is expected to close by the end of 2018 and is not subject to a financing condition.
The stock reopened at 8:30 a.m. ET up more than 23 percent, trading around $14.77 at time of publication.
Related Links:
Rent-A-Center Isn't Selling, But Softens Blow With Bullish Guidance
What You Need To Know From Rent-A-Center's Guidance
Photo by M.O. Stevens.
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