Rent-A-Center Reviewing Proposal from Vintage Capital
PLANO, Texas--(BUSINESS WIRE)--Jun 12, 2018--Rent-A-Center, Inc. (NASDAQ/NGS:RCII) (“Rent-A-Center” or the “Company”), a leader in the rent-to-own industry, today confirmed it has received a proposal from Vintage Capital Management, LLC (“Vintage”) to acquire all outstanding shares of Rent-A-Center. The Company issued the following statement:
Vintage filed a Schedule 13D amendment this morning containing a letter to the Rent-A-Center Board of Directors offering to acquire the Company for $14.00 per share in cash. Subsequently, Vintage provided Rent-A-Center with an equity commitment letter and other necessary supporting documentation related to its bid. Consistent with its fiduciary duties, the Rent-A-Center Board is reviewing Vintage’s latest offer, with the assistance of outside financial and legal advisors, to determine the course of action that is in the best interest of the Company and all its stockholders. As previously announced, the Board is prepared to enter into a transaction that it believes will achieve its objectives of maximizing value for stockholders and providing certainty of closing. Rent-A-Center stockholders do not need to take any action at this time.
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 2,400 stores in the United States, Mexico, Canada and Puerto Rico, and approximately 1,250 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 our website at www.rentacenter.com.
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 completion of the Company’s review of its strategic and financial alternatives; difficulties encountered in improving the financial and operational performance of the Company’s business segments; the Company’s ability to refinance its senior credit facility expiring in early 2019 on favorable terms, if at all; risks associated with pricing changes and strategies being deployed in the Company’s businesses; the Company’s ability to realize additional benefits from its initiatives regarding cost-savings and other EBITDA enhancements, efficiencies and working capital improvements; the Company’s ability to execute its franchise strategy; failure to manage the Company’s store labor and other store expenses; the Company’s ability to successfully execute its strategic initiatives; disruptions caused by the operation of the Company’s store information management system; the Company’s 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 and enhancements to its unmanned platform for its Acceptance NOW segment; disruptions in the Company’s supply chain; limitations of, or disruptions in, the Company’s distribution network, and the impact, effects and results of the changes the Company has made and is making to its distribution methods; 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; 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, if any; 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, 2017 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. 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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Maureen Short, 972-801-1899
Interim Chief Financial Officer
Joele Frank, Wilkinson Brimmer Katcher
James Golden / Matthew Gross / Aura Reinhard
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: HOME GOODS RETAIL SPECIALTY OTHER RETAIL
SOURCE: Rent-A-Center, Inc.
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PUB: 06/12/2018 07:04 PM/DISC: 06/12/2018 07:04 PM