Winston & Strawn LLP advised Rent-A-Center on the deal
Rent-A-Center, Inc. (NASDAQ: RCII) has entered into a definitive agreement to acquire substantially all of the assets of C/C Financial Corp. dba Merchants Preferred, a nationwide provider of virtual rent-to-own services.
The acquisition of Merchants Preferred has been unanimously approved by Rent-A-Center’s Board of Directors and is subject to customary closing conditions. The Company expects the acquisition to close in the third quarter. Total consideration consists of $28 million in cash and a minimum of 701,918 shares of Rent-A-Center common stock. The acquisition is valued at approximately $47.5 million, based on Rent-A-Center’s closing stock price on July 12, 2019, of $27.83. The total consideration and the number of shares issued will depend upon the stock price at closing but, the number of shares are expected to be as stated above. The impact to 2019 earnings from the acquisition is not expected to be material.
Merchants Preferred, founded in 2012 and based in Atlanta, Georgia, is a nationwide provider of virtual rent-to-own services for non-prime customers. Merchants Preferred’s advanced technology, back office infrastructure and outstanding service enable competitive customer and retailer value propositions. Additionally, they are led by a highly experienced management team with experience in the non-prime consumer space.
The Winston team advising Rent-A-Center was led by partner Todd J. Thorson (Picture), with Thomas W. Hughes, Miles McDougal, Virginia Welch Peters and Patrick Luthen
Involved fees earner: Thomas Hughes – Winston & Strawn; Patrick Luthen – Winston & Strawn; Miles McDougal – Winston & Strawn; Todd Thorson – Winston & Strawn; Virginia Welch Peters – Winston & Strawn;
Law Firms: Winston & Strawn;
Clients: Rent-A-Center Inc;