Houlihan Lokey Advises Merchants Preferred

Houlihan Lokey is pleased to announce that Merchants Preferred has been acquired by Rent-A-Center, Inc. The transaction closed on August 13, 2019.

Merchants Preferred, founded in 2012 and based in Atlanta, Georgia, is a nationwide provider of virtual rent-to-own services for non-prime customers. Merchants Preferred's advanced technology, back-office infrastructure, and outstanding service enables competitive customer and retailer value propositions. In addition, they are led by a highly skilled management team with experience in the non-prime consumer space.

A rent-to-own industry leader, Texas-based Rent-A-Center is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products, such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation. The company owns and operates approximately 2,200 stores in the United States, Mexico, and Puerto Rico, and approximately 1,100 Acceptance Now kiosk locations in the United States and Puerto Rico. Rent-A-Center Franchising International, Inc., a wholly owned subsidiary of the company, is a national franchiser of approximately 320 rent-to-own stores operating under the trade names of Rent-A-Center, ColorTyme, and RimTyme.

Houlihan Lokey served as the exclusive financial advisor to Merchants Preferred and assisted in structuring and negotiating the transaction. The transaction highlights Houlihan Lokey's continued position as a leading advisor to the specialty finance industry.