UNITED STATES 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 8, 1998 (January 6, 1998)
Date of Report (Date of earliest event reported)
Rent-Way, Inc.
(Exact name of registrant as specified in its charter)
Pennsylvania
(State or other jurisdiction of corporation)
000-22026
(Commission File Number)
25-1407782
(IRS Employer Identification No.)
3230 West Lake Road, Erie, Pennsylvania 16505
(Address of principal executive offices) (Zip code)
814-836-0618
(Registrant's telephone number, including area code)
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RENT-WAY, INC.
8-K, Continued
Item 5. Other Events
The registrant issued the following press release on January 6, 1998
Erie, PA - January 6, 1998 - Rent-Way, Inc. (NASDAQ - RWAY), today announced
that it signed a letter of intent to acquire the stock of Champion Rentals,
Inc., a privately-held rental-purchase chain for approximately $70 million plus
assumption of liabilities. Champion Rentals, with 145 stores, has annualized
revenues of approximately $80 million.
Consummation of the acquisition is subject to completion of due diligence,
preparation of a definitive purchase agreement, financing, and other customary
closing conditions. The purchase price is subject to adjustment at closing.
Rent-Way is currently evaluating several proposals from institutional lenders
regarding the financing of the acquisition. No other terms of the acquisition
were disclosed.
Of Champion Rentals' 145 stores, located primarily in the Southeast United
States, 25 were opened in 1997. Rent-Way expects that the acquisition, if
consummated, will have the effect of increasing earnings per share. Upon the
closing of the recently announced 50-store acquisition of Ace T.V. Rentals and
the completion of the acquisition of Champion Rentals, Rent-Way's total stores
will increase to 382.
Rent-Way currently operates a chain of 187 rental-purchase stores located in
Colorado, Delaware, Florida, Illinois, Indiana, Kentucky, Maryland, Michigan,
New York, Ohio, Pennsylvania, Virginia, West Virginia, and Washington, D.C. 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.
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned here unto duly authorized.
SIGNATURES
Date: January 8, 1998 Rent-Way, Inc.
(Registrant)
/s/ Jeffrey A. Conway
--------------------------
Jeffrey A. Conway
Chief Financial Officer
