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Rent-A-Center board decides to stay with strategic plan, offers guidance

Rent-A-Center Inc. said June 10 that its board of directors determined that continuing with its strategic plan remained in the best interests of the company and its shareholders and also decided that the retailer would not be sold.

The decisions followed a board review of strategic and financial alternatives for the Texas-based rent-to-own company. Rent-A-Center noted that it "actively explored" a possible sale, but the board did not find any acquisition proposal as meeting its objectives of maximizing shareholder value and providing certainty of closing.

Vintage Capital Management LLC, which owns a 5.9% stake in the company, has sought an acquisition deal. Rent-A-Center rejected two bids in 2017, including one for $798 million, after which Vintage Capital agreed not to raise its stake or to try to gain board control.

Meanwhile, Rent-A-Center also provided its financial outlook for fiscal 2018, expecting consolidated revenue of $2.64 billion to $2.69 billion and non-GAAP diluted EPS in the range of 65 cents to 90 cents. The current S&P Capital IQ consensus estimate for full-year total revenue is $2.62 billion; estimates for EPS have not yet been determined.

Board Chairman J.V. Lentell said in a statement: "As demonstrated by our updated financial outlook and key operating metrics for April and May, the company's strategic plan is already delivering substantial results, and Rent-A-Center is well-positioned to generate value for all stockholders."