Rent-A-Center Ends all Further Litigation with Vintage Capital and B. Riley
April 22 2019 - 7:00AM
Business Wire
Rent-A-Center to Receive Payment of $92,500,000
in Settlement of all Litigation relating to its Termination of the
Merger Agreement with Vintage Capital
Rent-A-Center, Inc. (NASDAQ:RCII) (“Rent-A-Center” or the
“Company”), a leader in the rent-to-own industry, today announced
that it had agreed in principle to settle all litigation with
Vintage Capital Management, LLC (“Vintage Capital”) and B. Riley
Financial, Inc. relating to the Company’s termination of the
Agreement and Plan of Merger (the “Merger Agreement”), dated June
17, 2018, by and among the Company and certain affiliates of
Vintage Capital. In the settlement, Rent-A-Center will receive a
payment of $92,500,000 in cash. The parties have agreed to enter
into a definitive settlement agreement by April 25, 2019 and that
the amount due to Rent-A-Center will be paid within 28 days
thereafter. In connection with the settlement, Rent-A-Center will
exchange mutual releases with all other parties with respect to all
matters relating to the Merger Agreement, including its
termination.
After payment of all remaining costs, fees and expenses of
Rent-A-Center relating to the terminated merger agreement and
arising from the settlement of the litigation, it expects to retain
pre-tax proceeds of approximately $80 million.
Mitch Fadel, Chief Executive Officer of Rent-A-Center, said, “We
are pleased to finally conclude this matter, avoiding further
litigation and providing certainty regarding the payment of the
termination fee. We look forward to turning our sole and undivided
attention to executing our strategic plan focused on growing our
business and enhancing value for our stockholders.”
About Rent-A-Center, Inc.
A rent-to-own industry leader, Plano, Texas-based,
Rent-A-Center, Inc., 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 2,300
stores in the United States, Mexico, Canada and Puerto Rico, and
approximately 1,200 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 280 rent-to-own stores operating under
the trade names of “Rent-A-Center,” “ColorTyme,” and “RimTyme.” For
additional information about the Company, please visit its website
at www.rentacenter.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190422005234/en/
Investors:Rent-A-Center, Inc.Maureen ShortChief Financial
Officer972-801-1899maureen.short@rentacenter.com
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