The private-equity firm offered to pay $30.50 a share for Aaron's. Vintage Capital and its affiliates hold a nearly 10% stake on Aaron's. The firm said it privately offered to acquire the company three times since 2011.
The offer comes shortly after Aaron's announced fourth-quarter earnings, which beat analysts estimates.
The company posted earnings of 30 cents a share for the quarter, beating the Capital IQ Consensus Estimate of 29 cents a share. Revenue fell 2.6% to $553.9 million for the quarter, which was in-line with analysts estimates of $554.9 million.
TheStreet Ratings team rates AARON'S INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about its recommendation:
"We rate AARON'S INC (AAN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."