Rent-A-Center, Inc. (NASDAQ: RCII) gained ground Monday after the company disclosed that it has received a revised acquisition offer after ending its strategic review.
The Plano, Texas-based firm, which boasts its status as "a leader in the rent-to-own industry," today issued a statement in which the Rent-A-Center Board of Directors unanimously determined to conclude its review of strategic and financial alternatives:
The Company "received a letter containing an increased offer," the statement continued “to acquire the Company from one of the parties which had previously been involved in the process, and the letter further stated that it "does not constitute an offer capable of being accepted or a binding agreement of any kind."
The letter was not accompanied by equity commitment letters that would be necessary for the Company to evaluate whether to enter into an agreement with an acquisition entity possessing no assets. Consistent with its fiduciary duties, the Board would carefully consider any credible proposal with the assistance of its outside financial and legal advisors to determine whether a proposal would ultimately maximize stockholder value.
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."
Rent-A-Center shares gained 41 cents, or 4.1%, Monday to $10.52
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