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Rent-A-Center, Vintage Capital Receive Second Request from FTC Under HSR Act
Friday 14 September 2018

14 September 2018 - Texas, US-based rent-to-own specialist Rent-A-Center, Inc. (NASDAQ: RCII) and private and public equity investor Vintage Capital Management, LLC, which has a controlling interest in rent-to-own company Buddy's Newco LLC d/b/a Buddy's Home Furnishings have received a Request for Additional Information and Documentary Materials from the Federal Trade Commission in connection with the pending acquisition of Rent-A-Center by affiliates of Vintage Capital, the company said.

The Second Request was issued under notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

The effect of the Second Request is to extend the current waiting period imposed by the HSR Act until 30 days after Rent-A-Center and Buddy's have substantially complied with the request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC. Rent-A-Center and Buddy's continue to cooperate fully with the FTC.

The parties said they plan to complete the merger as soon as practicable following receipt of regulatory clearance from the FTC. The company and Vintage Capital currently expect the merger to close during the first quarter of 2019.

A special meeting of Rent-A-Center's stockholders to approve the merger remains scheduled for 18 September 18.

In November 2017, Rent-A-Center received a conditional, non-binding proposal from Vintage Capital Management, LLC to acquire all of the outstanding shares of the company for USD 13.00 per share in cash, the company said.

A fourth offer, at USD 15 per share, led to a definitive agreement announced in June 2018. The deal, including debt, is worth around USD 1.37bn.

As announced by the company on 30 October, the Rent-A-Center board of directors has initiated a process to explore strategic and financial alternatives.

Rent-A-Center 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.

The company's Rent-A-Center Franchising International subsidiary is a national franchiser of rent-to-own stores operating under the trade names of "Rent-A-Center," "ColorTyme," and "RimTyme."

J.P. Morgan is serving as financial advisor and Winston and Strawn LLP is serving as legal advisor to Rent-A-Center.
Date Published: 14/09/2018
Target: Rent-A-Center, Inc
Country: USA
Deal Size: 1.37bn (USD)
Sector: Wholesale/Retail
Type: LBO
Financing: Cash
Status: Agreed
Buyer: Vintage Capital Management