Vintage Capital to Acquire Rent-A-Center for Approximately $1.36 Billion

On June 18, 2018, Rent-A-Center, a leader in the rent-to-own industry, announced that it has entered into a definitive agreement with Vintage Rodeo Parent (Vintage), an affiliate of Vintage Capital Management (Vintage Capital), pursuant to which Vintage will acquire all of the outstanding shares of Rent-A-Center common stock for $15.00 per share in cash, representing a total consideration of approximately $1.365 billion, including net debt. Wilson Sonsini Goodrich & Rosati is representing Vintage Capital in the transaction.

According to a press release, under the terms of the agreement, Rent-A-Center stockholders will receive $15.00 in cash for each share of Rent-A-Center common stock, which represents a premium of approximately 49 percent over the company's closing stock price on October 30, 2017, immediately prior to the announcement that Rent-A-Center's board of directors initiated a process to evaluate strategic and financial alternatives focused on maximizing stockholder value.

The Rent-A-Center Board has unanimously approved the transaction and has recommended that stockholders vote in favor of the transaction. The transaction, which is not subject to a financing condition, is expected to close by the end of 2018, subject to customary closing conditions, including the receipt of stockholder and regulatory approvals. Upon completion of the transaction, Rent-A-Center will become a privately held company and its common shares will no longer be listed on any public market.

The WSGR team advising Vintage Capital includes:

Corporate/M&A:
Bradley Finkelstein, Partner
Doug Schnell, Partner
Nikki Smith, Associate
Wendy Guo, Associate
Peter Jung, Associate

Corporate Finance and Governance:
John Fore, Partner
Aaron Wax, Associate

Antitrust:
Jamillia Ferris, Partner
Chris Williams, Of Counsel

Employee Benefits and Compensation:
Dave Thomas, Partner
Michael Montfort, Counsel

Technology Transactions:
Jamie Clessuras, Partner
Barath Chari, Associate

Privacy:
Matthew Staples, Of Counsel

Real Estate and Environmental:
Susan Reinstra, Partner
Martin Sul, Counsel
Lee Cumberland, Associate

Tax:
Myra Sutanto Shen, Partner

Employment Litigation:
Matthew Gorman, Associate

Regulatory and Compliance:
Larry Perrone, Partner

For additional details, please see Rent-A-Center's press release.