Rent-A-Center will hold conference call to discuss its 2019
PLANO, Texas--(BUSINESS WIRE)--Dec. 18, 2018--
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.
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
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181218005416/en/
Source: Rent-A-Center, Inc.
Maureen Short, 972-801-1899
Chief Financial Officer