As part of the deal, the private equity firm will purchase the rent-to-own company’s common stock for $15 a share.
Rent-A-Center provides consumer electronics, computers and furniture to customers under flexible rental-purchase agreements. It owns approximately 2,400 stores in the United States, Mexico, Canada and Puerto Rico.
Rent-A-Center’s board of directors recently approved of the transaction—through which the company will become privately held, and its common shares no longer listed on any public market.
The transaction, which represents a total consideration of $1.3 billion including net debt, is expected to close by the end of 2018.
Rent-A-Center was represented in the deal by lead attorneys Thomas W. Hughes and Todd J. Thorson, partners in the Dallas office of Winston & Strawn. The team also included partner Jeff Cole, and associates Melissa D. Kalka and Josh Merrill.
Rent-A-Center’s board of directors were represented by a team of attorneys from Sullivan & Cromwell, including Alison S. Ressler, Scott C. Campbell, Oliver A. Lane, Ari B. Blaut, Jeannette E. Bander, and Eric H. Queen.
Lawyers from Wilson Sonsini Goodrich & Rosati served as legal advisers to Vintage Capital in the deal.