NEW YORK (TheStreet) -- Aaron's (AAN) was falling 7.9% to $28.06 Tuesday after rejecting a $2.3 billion shareholder buyout offer and acquiring retail a retail credit financing firm for about $700 million.
In a note to shareholders Aaron's said its board rejected the $2.3 billion offer from Vintage Capital Management as "inadequate, illusory and not in the best interests of Aaron's shareholders."
In the same note, the company said it identified Progressive Finance Holdings as "an ideal acquisition target," saying it will give the retailer a chance to lead the virtual rent-to-own market. The company expects Progressive to deliver investor returns, noting the company's standalone revenues of $403 million in 2013, up from $228 million in 2012.
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TheStreet Ratings team rates AARON'S INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AARON'S INC (AAN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."