Merger Opinion: Vintage Capital Management agrees to buy Rent-A-Center [RCII] at $15/share
We have Rent-A-Center rated as an A- in probability of being involved in a merger, acquisition or buyout (MAB). Vintage Capital Management has offered to acquire Rent-A-Center [RCII] for $15/share. This is a price that is only 88% of fair value ($17/share). Do they plan on consolidating it into Buddy’s and Aaron’s? We are having a hard time accepting the statement that approving the offer accomplishes “maximizing shareholder value”.
Revenue growth has been a challenge for over 5 years and declining. It would be interesting to hear how buying the company will solve the revenue growth problem. Investors should reject the standard vocabulary that is used in these situations and ask for specifics.
