Aaron's buys Progressive Finance, cuts outlook

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Associated Press

Posted on April 15, 2014 at 7:00 AM

Updated Tuesday, Apr 15 at 7:02 AM

ATLANTA (AP) — Furniture leasing company Aaron's is buying online rent-to-own finance company Progressive Finance Holdings for $700 million in cash, in a bid to turn around its business even as it cut its first-quarter outlook.

Meanwhile, Aaron's says it rejected a takeover offer from Vintage Capital Management for $30.50 per share, a 1 percent premium on the stock's closing price Monday. Aaron's says the offer is not in the best interest of shareholders.

Aaron's sells and leases furniture and accessories and offers flexible payment plans for people with credit problems.

Aaron's says it expects the acquisition of Progressive, from Summit Partners, to help its earnings in 2014.

Aaron's also cut its first-quarter revenue and earnings guidance, blaming the weather and difficult economic conditions.

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