By Lisa Johnston
New products on display at the American International Toy Fair, held in N
Atlanta – Aaron’s, the rent-to-own furniture, CE and majap chain, has received an acquisition proposal from Vintage Capital Management, an equity investment group and one of the retailer’s largest stockholders.
The all-cash offer, for $30.50 per share, represents the third takeover proposal from Vintage, which holds about 10 percent of Aaron’s stock.
Vintage cited its 18-year relationship with Aaron’s and its “significant experience in the rent-to-own industry,” including several years as Aaron’s second largest franchisee. Vintage is also the majority owner of Buddy’s Home Furnishings, a rent-to-own business operating primarily in the Southeast.
Aaron’s rejected the prior two bids, and said its board will evaluate the latest unsolicited offer in line with its fiduciary duties. The company added that it is not currently in discussions with any party regarding any acquisition offer.
Aaron’s has more than 2,000 company-operated and franchised stores in the U.S. and Canada. The company also produces its own furniture through its Woodhaven manufacturing division.
For the 12 months, ended Dec. 31, Aaron’s reported a 1 percent increase in net revenue, to $2.2 billion, while net earnings fell 30 percent to $121 million.
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