NEWPORT BEACH, Calif.--(BUSINESS WIRE)--Engaged Capital, LLC (together with its affiliates, “Engaged Capital”), an investment firm specializing in enhancing the value of small and mid-cap North American equities with a 20.5% economic exposure to Rent-A-Center, Inc. (“RCII” or the “Company”) (NASDAQ:RCII), today issued the following statement regarding its investment in Rent-A-Center:
“We are pleased to see the announcement of a proposal to acquire Rent-A-Center at a significant premium to yesterday’s stock price (35%) and a very strong premium to the unaffected stock price before any outside involvement (85%). We have and continue to believe that the Board should be fully exploring all strategic options to maximize shareholder value. The Board’s response is troubling on many levels and we hope it does not reflect a continued view of entrenchment and loyalty to the founder as opposed to the shareholders, who voted for significant change at the company’s annual meeting last month,” said Glenn W. Welling, Chief Investment Officer of Engaged Capital.
About Engaged Capital:
Engaged Capital, LLC (“Engaged Capital”) was established in 2012 by a group of professionals with significant experience in activist investing in North America and was seeded by Grosvenor Capital Management, L.P., one of the oldest and largest global alternative investment managers. Engaged Capital is a limited liability company owned by its principals and formed to create long-term shareholder value by bringing an owner’s perspective to the managements and boards of undervalued public companies. Engaged Capital’s efforts and resources are dedicated to a single investment style, “Constructive Activism” with a focus on delivering superior, long-term, risk-adjusted returns for investors. Engaged Capital is based in Newport Beach, California.