Rent-A-Center agrees to acquire Acima Holdings for $1.27 billion cash
PLANO, Texas – Lease-to-own specialist Rent-A-Center announced Monday that it has entered an agreement to purchase lease-to-own solutions provider Acima Holdings LLC for $1.27 billion in cash and about 10.8 million shares of Rent-A-Center common stock worth $377 million.
“We’re excited to welcome Acima to the Rent-A-Center family,” said Mitch Fadel, CEO of Rent-A-Center. “Founder Aaron Allred and his team have created a leading virtual LTO solution for retailers and consumers. We all share a common vision to expand the virtual LTO offering across a broader set of retail partners and to meet the needs of more customers through an integrated omnichannel strategy. Acima will help us strengthen our organization, accelerate growth and increase our virtual partner base, allowing us to better serve more consumers with the flexibility of LTO.”
Expected to close sometime in the first half, the purchase would combine two major players in the lease-to-own segment.
The Rent-A-Center Business and Mexico segments offer lease-to-own options in categories such as furniture, appliances and consumer electronics. There are about 1,950 Rent-A-Center stores in the United States, Mexico, and Puerto Rico and about 460 franchise locations. It also does business on www.rentacenter.com.
Acima has a national presence in retail partner stores and e-commerce platforms and a broad range of product verticals. Founded in 2013 in Salt Lake City, it has grown annual revenues from $97 million in 2016 to an expected $1.25 billion in 2020.
The company will continue to operate out of Salt Lake City and will incorporate its Preferred Dynamix platform for consumers and retail partners. Following the closing, the current Acima management team will report to Preferred Dynamix Executive Vice President Jason Hogg, and the combined business will be reported in the Preferred Lease segment.
Rent-A-Center said it has obtained $1.825 billion in debt financing commitments from J.P. Morgan Securities LLC, Credit Suisse and HSBC Securities (USA) Inc. in connection with the transaction, subject to the terms and conditions of the respective commitment letters.
I’m Tom Russell and have worked at Furniture/Today since August 2003. Since then, I have covered the international side of the business from a logistics and sourcing standpoint. Since then, I also have visited several furniture trade shows and manufacturing plants in Asia, which has helped me gain perspective about the industry in that part of the world. As I continue covering the import side of the business, I look forward to building on that knowledge base through conversations with industry officials and future overseas plant tours. From time to time, I will file news and other industry perspectives online and, as always, welcome your response to these Web postings.