Rainbow sets vote on RAC merger
By Furniture Today Staff -- Furniture Today, April 12, 2004
CANFIELD, Ohio — Rainbow Rentals will hold a special shareholder meeting May 12 to vote on the adoption of its merger agreement with Rent-A-Center.
The two rent-to-own operators announced the merger plan Feb. 4, under which Rainbow would become a subsidiary of RAC and each Rainbow shareholder would receive $16 per share in cash.
Rainbow shareholders of record on April 12 will be entitled to vote on the transaction. The company plans to mail definitive proxy material to shareholders relating to the special meeting on or about April 14.
The merger is subject to approval by the majority of holders of Rainbow common stock and must comply with customary conditions, including compliance with applicable antitrust requirements.
The merger is expected to close in May.
Rainbow Rentals operates 124 RTO stores in 15 states.
Plano, Texas-based Rent-A-Center owns 2,650 stores in the United States and Puerto Rico, and through its ColorTyme subsidiary operates 325 franchised RTO stores.
