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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
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Date of Report (Date of earliest event reported):
August 9, 1996
ALRENCO, INC.
(Exact name of registrant as specified in its charter)
Indiana 0-27490 35-1480655
(State or other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
1736 E. Main Street, New Albany, Indiana 47150
(Address of principal executive offices) (Zip Code)
(812) 949-3370
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
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Item 2. Acquisition or Disposition of Assets.
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On August 9, 1996 (the "Closing Date"), pursuant to separate
Stock Purchase Agreements of the same date (the "Agreements"),
Alrenco, Inc. ("Alrenco"), in a transaction that was effective on
August 1, 1996 (the "Effective Date"), acquired all of the
outstanding shares of common stock of Network Rental, Inc., a
Georgia corporation ("Network Rental"), from Perry J. McNeal and
the Vyrdilee Brooks McNeal Scholarship Fund Charitable Remainder
Trust for $5.7 million, subject to post-closing adjustments for
certain assumed liabilities and transferred assets (the "Purchase
Price"). The Purchase Price was determined based upon a multiple
of revenue of Network Rental. The Purchase Price was paid in
cash on the Closing Date, which Alrenco funded through a
borrowing under its existing credit facility with Star Bank, N.A.
Network Rental operates 14 rental-purchase stores in the
Atlanta, Georgia area. These stores generally offer durable
consumer goods such as televisions, video cassette recorders,
stereos, refrigerators, appliances, furniture and accessories, to
individuals under flexible rental-purchase arrangements.
Pursuant to the Agreements, Perry J. McNeal entered into a
Noncompetition Agreement with Alrenco. The Noncompetiton
Agreement, among other things, prohibits Perry J. McNeal from
competing with Alrenco or an affiliated company until August 9,
2001.
No material relationships existed between Network Rental,
Perry J. McNeal, the Vyrdilee Brooks McNeal Scholarship Fund
Charitable Remainder Trust or any other affiliate of Network
Rental and Alrenco or any director or officer of Alrenco.
Item 7. Financial Statements and Exhibits.
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(a) Financial Statements.
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None of the financial statements of Network Rental required
by this Item are currently available. All of such financial
statements will be filed as an amendment to this report within 60
days after the required filing date of this report.
(b) Pro Forma Financial Information.
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The pro forma financial information relating to the
transaction described in Item 2 above will be filed as an
amendment to this report within 60 days after the required filing
date for this report.
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(c) Exhibits.
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The following exhibits are filed as a part of this report:
Exhibit
Number Description of Exhibit
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2.1* -- Stock Purchase Agreement, dated August 9,
1996, by and between Perry J. McNeal and
Alrenco, Inc.
2.2* -- Stock Purchase Agreement, dated August 9,
1996, by and between Vyrdilee Brooks McNeal
Scholarship Fund Charitable Remainder Trust,
Network Rental, Inc. and Alrenco, Inc.
2.3* -- Noncompetition Agreement, dated August 9,
1996, by and between Perry J. McNeal and
Alrenco, Inc.
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* To be filed by amendment.
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Signatures
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Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Dated: August 26, 1996
ALRENCO, INC.
By: /s/ Theodore H. Wilson
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Theodore H. Wilson
Executive Vice President and
Chief Financial Officer
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