Rent-A-Center Going Private In $800 Million Sale
NEW YORK (CBSDFW.COM/AP) — Rent-A-Center is being sold to a private equity firm for more than $800 million.
The chain, which leases household goods on a rent-to-own basis, got a second offer from Vintage Capital Management for $15 per share, a 25 percent premium to the company's closing price on Friday, and a dollar more per-share than Vintage bid the previous week. The Plano-based company said Monday that it's accepted the second bid.
In a statement, Rent-A-Center Chief Executive Officer Mitch Fadel said, "The Rent-A-Center Board, having just completed a comprehensive review of strategic and financial alternatives in consultation with outside legal and financial advisors, unanimously supports this transaction and is confident it maximizes value for stockholders while delivering a significant and immediate cash premium."
Rent-A-Center Inc. has been reviewing its plans over the past year, including a potential sale.
The sale to Vintage is expected to close by the end of 2018.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)