Rent-a-Center Buying RentWay

The deal is worth $281 million.
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Rent-a-Center (RCII) - Get Report agreed to acquire rival Rent-Way (RWY) for $10.65 a share, or $281 million in cash.

"With our national brand and advertising driving customer traffic and our broad selection of high quality, brand-name merchandise, we believe we can grow both revenue and store operating income to nearly comparable results to our core stores," said Rent-a-Center chief Mark Speese.

Rent-A-Center intends to fund the acquisition primarily with an increase in its senior credit facility. The acquisition, which is expected to be completed in the fourth quarter of 2006, is conditioned upon customary closing conditions for a transaction of this nature, including the receipt of requisite regulatory approval and approval of Rent-Way's shareholders.