ATLANTA-- Furniture leasing and manufacturing firm Aaron's, Inc. (NYSE: AAN) said it ended litigation seeking to compel Vintage Capital Management to disclose how it would fund its proposed $2.3 billion buyout offer for Aaron's. The move followed Vintage's withdrawal of the offer.
"Although Vintage did not comply with the disclosure requirements nor was it willing to share customary information regarding the existence of either the equity or the debt financing for its proposal, Aaron's has decided to cease these legal proceedings," Aaron's said in a statement.
"Your decision to reject our offer and instead spend $700 million on the acquisition of Progressive Finance without any input from shareholders appears to be a desperation move designed to do nothing but block our offer," Vintage said in an April 17 letter to Aaron's board, "Aaron's does not need Progressive Finance and the $426 million in new debt incurred to finance the acquisition—it needs new directors who will install a new management team."
Aaron's, Inc. has more than 2,130 company-operated and franchised stores in 48 states and Canada. It was founded in 1955 by entrepreneur and Chairman Emeritus R. Charles Loudermilk, who retired in 2012. Aaron's has been publicly traded since 1982.
There are two operating divisions of Aaron’s: sales and lease ownership and manufacturing. The Aaron's Sales & Lease Ownership division is the largest and fastest growing division, serving credit-constrained consumers in need of basic home furnishings, appliances and electronics through 1,985 company-owned stores and franchises.
The vertically integrated Woodhaven Furniture Industries Division manufactures the majority of furniture leased and sold by Aaron’s. Aaron's operates 14 factories under the Woodhaven Furniture Industries brands. In the most recent quarter factory sales of furniture and bedding totaled $89 million.
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