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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
JANUARY 31, 1997 (JANUARY 24, 1997)
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Date of Report (Date of earliest event reported)
RENT-WAY, INC.
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(Exact name of registrant as specified in its charter)
PENNSYLVANIA 000-22026 25-1407782
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(State or other jurisdiction (Commission File (IRS Employer
of corporation) Number) Identification No.)
3230 WEST LAKE ROAD, ERIE, PENNSYLVANIA 16505
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(Address of principal executive offices) Zip Code
Registrant's telephone number, including area code: (814) 836-0618
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RENT-WAY, INC.
8-K, Continued
ITEM 5. OTHER EVENTS
The registrant issued the following press release on January 24, 1997:
Erie, PA, January 24, 1997 -- Rent-Way, Inc. (NASDAQ-RWAY), today announced it
signed a definitive purchase agreement to acquire 70 rental-purchase stores,
located in Colorado, Florida, Indiana, Kentucky, Michigan, Ohio, and West
Virginia from Rental King, a privately-owned chain. "With the completion of
this acquisition, Rent-Way will become the fourth largest company in the
rental-purchase industry, with 193 stores and revenues at a twelve month
running rate approaching $100 million", stated William E. Morgenstern,
President and CEO of Rent-Way.
The purchase price is approximately $23 million. No other terms or details of
the definitive purchase agreement were disclosed. Closing of the transaction is
set for early February, subject to due diligence, the completion of financial
arrangements and other customary conditions.
Annual revenues for 62 of the 70 stores is approximately $24 million. "Eight of
the 70 stores are newly opened and have only been operating for about 60 days.
Therefore the revenue stream of these stores is just beginning, while a
significant portion of the start up costs have already been expensed",
explained Mr. Morgenstern.
This acquisition is the second announced in 1997. Assuming completion of the
acquisition, Rent-Way will have grown from just 19 stores with annual revenues
of $8 million when it had its public offering in 1993, to 193 stores with
monthly revenues of approximately $8 million.
Rent-Way currently operates a chain of 123 rental-purchase stores located in
Delaware, Florida, Illinois, Indiana, Maryland, Michigan, New Jersey, New York,
Ohio, Pennsylvania, Virginia, and Washington, DC. The Company rents brand name
durable household products such as home entertainment equipment, furniture, and
major appliances on a week-to-week or month-to-month basis under full service
rental-purchase agreements.
SIGNATURES
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.
RENT-WAY, INC.
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(Registrant)
Date JANUARY 31, 1997 /s/ JEFFREY A. CONWAY
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(Signature)
JEFFREY A. CONWAY
CHIEF FINANCIAL OFFICER
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