Private equity firm Vintage Capital Management has made a bid for the remaining stake in rent-to-own furniture business Aaron’s at a premium to its current market value.
Vintage has bid $30.50 per share for the 90 per cent stake it doesn’t already own, valuing the business at $2.3bn. The offer represents a premium of 13 per cent to the company’s closing price on Thursday, which was the last day of trading before the offer was announced.
Aaron’s saw its profits drop 38 per cent to $22.7m in the fourth quarter as revenues fell two per cent to $553.8m
Vintage, which currently owns a majority stake in the company’s sector peer Buddy’s Home Furnishing, has offered to buy Aaron’s three times since 2011, according to the Wall Street Journal.
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