Vintage Capital Re-offers to Acquire Aaron's

Aaron'sATLANTA-Vintage Capital Management, a private equity firm that holds 10 percent of retailer Aaron's common stock, has made a new offer to acquire Aaron's.

According to a letter sent by Brian Kahn, managing member of Vintage Capital, to Aaron's board and filed with the U.S. Securities and Exchange Commission, Vintage Capital is offering to purchase Aaron's in an all-cash transaction valued at $30.50 a share. Kahn said the equity firm has made three offers to acquire Aaron's since 2011, and that each offer "was summarily ignored by the board of directors at the expense of your unknowing stockholders. During this time, Aaron's stock has performed poorly while general stock market indices have appreciated significantly."

Kahn said Vintage Capital made its most recent offer to Ronald Allen, Aaron's chairman, president and CEO, on Feb. 5. "We believe that our proposal is compelling and in the best interest of all Aaron's stakeholders, including its stockholders, employees and franchisees," he said. He cited Vintage Capital's experience in the rent-to-own business, including several years as Aaron's second largest franchisee and as current majority owner of Buddy's Home Furnishings, a rent-to-own business.

In a statement responding to Vintage Capital's offer, Aaron's said, "The board of directors will evaluate the offer in line with its fiduciary duties. (Aaron's) is not currently in discussions with any party regarding any offer to acquire the company."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.