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
PLANO, Texas--(BUSINESS WIRE)--Apr. 22, 2019--
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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Source: Rent-A-Center, Inc.
Investors:
Rent-A-Center, Inc.
Maureen Short
Chief
Financial Officer
972-801-1899
maureen.short@rentacenter.com