Vintage Capital Re-offers to Acquire Aaron's
February 10, 2014,
ATLANTA-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.