Rent-A-Center to Review Conditional, Non-Binding Proposal
November 03 2017 - 11:35AM
Business Wire
Board to Review Proposal as Part of Ongoing
Exploration of Strategic and Financial Alternatives
Rent-A-Center, Inc. (NASDAQ/NGS:RCII) (“Rent-A-Center” or
the “Company”), a leader in the rent-to-own industry, today
confirmed that it has received a conditional, non-binding proposal
from Vintage Capital Management, LLC (“Vintage”) to acquire all of
the outstanding shares of the Company for $13.00 per share in
cash.
As announced on October 30, 2017, the Rent-A-Center Board of
Directors has initiated a process to explore strategic and
financial alternatives. The Board, in consultation with its
financial and legal advisors, will carefully review and consider a
full range of options focused on maximizing stockholder value,
which will now include the Vintage proposal.
There can be no assurance that the Board’s exploration of
strategic and financial alternatives will result in any particular
action or any transaction being pursued, entered into or
consummated, or the timing of any action or transaction. The
Company does not intend to discuss or disclose developments with
respect to this process unless and until the Board has approved a
definitive course of action or the process is otherwise
concluded.
Rent-A-Center stockholders are not being requested to take any
action at this time.
J.P. Morgan is serving as financial advisor and Winston &
Strawn LLP is serving as legal advisor to Rent-A-Center.
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 stores in the United
States, Mexico, Canada and Puerto Rico, and 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 rent-to-own stores operating
under the trade names of “Rent-A-Center,” “ColorTyme,” and
“RimTyme.” For additional information about the Company, please
visit our website at www.rentacenter.com.
Forward-Looking Statements
This press release and the guidance above contain
forward-looking statements that involve risks and uncertainties.
Such forward-looking statements generally can be identified by the
use of forward-looking terminology such as “may,” “will,” “expect,”
“intend,” “could,” “estimate,” “should,” “anticipate,” “believe,”
or “confident,” or the negative thereof or variations thereon or
similar terminology. The Company believes that the expectations
reflected in such forward-looking statements are accurate. However,
there can be no assurance that such expectations will occur. The
Company's actual future performance could differ materially from
such statements. Factors that could cause or contribute to such
differences include, but are not limited to: the general strength
of the economy and other economic conditions affecting consumer
preferences and spending; factors affecting the disposable income
available to the Company’s current and potential customers; changes
in the unemployment rate; uncertainties concerning the outcome,
impact, effects and results of the Company’s exploration of its
strategic and financial alternatives; difficulties encountered in
improving the financial and operational performance of the
Company’s business segments; the Company’s chief executive officer
and chief financial officer transitions, including the Company’s
ability to effectively operate and execute its strategies during
the interim period and difficulties or delays in identifying and/or
attracting a permanent chief financial officer with the required
level of experience and expertise; failure to manage the Company’s
store labor and other store expenses; the Company’s ability to
develop and successfully execute strategic initiatives; disruptions
caused by the operation of the Company’s new store information
management system, and its transition to more-readily scalable,
“cloud-based” solutions; the Company’s ability to develop and
successfully implement digital or E-commerce capabilities,
including mobile applications; disruptions in the Company’s supply
chain; limitations of, or disruptions in, the Company’s
distribution network; rapid inflation or deflation in the prices of
the Company’s products; the Company’s ability to execute and the
effectiveness of a store consolidation, including the Company’s
ability to retain the revenue from customer accounts merged into
another store location as a result of a store consolidation; the
Company’s available cash flow; the Company’s ability to identify
and successfully market products and services that appeal to its
customer demographic; consumer preferences and perceptions of the
Company’s brand; uncertainties regarding the ability to open new
locations; the Company’s ability to acquire additional stores or
customer accounts on favorable terms; the Company’s ability to
control costs and increase profitability; the Company’s ability to
retain the revenue associated with acquired customer accounts and
enhance the performance of acquired stores; the Company’s ability
to enter into new and collect on its rental or lease purchase
agreements; the passage of legislation adversely affecting the
Rent-to-Own industry; the Company’s compliance with applicable
statutes or regulations governing its transactions; changes in
interest rates; adverse changes in the economic conditions of the
industries, countries or markets that the Company serves;
information technology and data security costs; the impact of any
breaches in data security or other disturbances to the Company's
information technology and other networks and the Company’s ability
to protect the integrity and security of individually identifiable
data of its customers and employees; changes in the Company’s stock
price, the number of shares of common stock that it may or may not
repurchase, and the Company’s dividend policy and any changes
thereto; changes in estimates relating to self-insurance
liabilities and income tax and litigation reserves; changes in the
Company’s effective tax rate; fluctuations in foreign currency
exchange rates; the Company’s ability to maintain an effective
system of internal controls; the resolution of the Company’s
litigation; and the other risks detailed from time to time in the
Company’s SEC reports, including but not limited to, its Annual
Report on Form 10-K for the year ended December 31, 2016, and its
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2017, June 30, 2017, and September 30, 2017. You are cautioned not
to place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Except as required
by law, the Company is not obligated to publicly release any
revisions to these forward-looking statements to reflect the events
or circumstances after the date hereof or to reflect the occurrence
of unanticipated events.
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version on businesswire.com: http://www.businesswire.com/news/home/20171103005623/en/
Rent-A-Center, Inc.Investors:Maureen Short,
972-801-1899Interim Chief Financial
Officermaureen.short@rentacenter.comorMedia:Joele Frank,
Wilkinson Brimmer KatcherJames Golden / Matthew Gross / Aura
Reinhard212-355-4449
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