Rent-A-Center Terminates Merger Agreement with Vintage Capital
December 18 2018 - 7:00AM
Business Wire
Rent-A-Center will hold conference call to
discuss its 2019 financial forecast
Rent-A-Center, Inc. (NASDAQ:RCII) (“Rent-A-Center” or the
“Company”), a leader in the rent-to-own industry, today announced
that the Company has terminated the Agreement and Plan of Merger
(the “Merger Agreement”), dated June 17, 2018, by and among the
Company and certain affiliates of Vintage Capital Management, LLC
(collectively, “Vintage Capital”). Rent-A-Center did not receive an
extension notice from Vintage Capital at or prior to 11:59 p.m.,
Eastern Time, on December 17, 2018, which was the deadline set
forth in the Merger Agreement for either party to provide notice to
the other of its election to extend the end date in the Merger
Agreement to March 17, 2019, due to the continued pendency of the
waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended, resulting from the previously disclosed
Second Request received by the parties from the Federal Trade
Commission in connection with the pending transaction.
In light of the current financial and operational performance of
the Company, the Board of Directors of Rent-A-Center determined not
to exercise its right to extend the end date and instead elected to
exercise the Company’s right to terminate the Merger Agreement.
Accordingly, Rent-A-Center notified Vintage Capital today of
Rent-A-Center’s termination of the Merger Agreement and noted
Vintage Capital’s obligation under the terms of the Merger
Agreement to pay the Company a reverse breakup fee of $126,500,000
within three business days. The Company will be hosting a
conference call to discuss its 2019 financial forecast on Thursday
morning, December 20, 2018, at 8:30 a.m. Eastern Time.
Webcast Information
Rent-A-Center will host a conference call on Thursday, December
20, 2018, at 8:30 a.m. Eastern Time to discuss its 2019 financial
forecast. For a live webcast of the call, visit http://investor.rentacenter.com. Certain financial
and other statistical information that will be discussed during the
conference call will also be provided on the same website. The
Company will issue an additional press release providing specific
information for individuals that wish to access the upcoming
conference call by telephone.
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 2,350
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 250 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.
Forward-Looking Statements
This press release contains a forward-looking statement. The
Company believes that the expectations reflected in such
forward-looking statement are accurate. However, there can be no
assurance that such expectations will occur.
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version on businesswire.com: https://www.businesswire.com/news/home/20181218005416/en/
Investors:Rent-A-Center, Inc.Maureen Short, 972-801-1899Interim
Chief Financial Officermaureen.short@rentacenter.com
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