Rent-Way, continuing breakneck - consolidation activity - Consumer Electronics

Television Digest with Consumer Electronics, Jan 12, 1998

Rent-Way, continuing breakneck pace of consolidation in rent-to-own (RTO) industry, agreed last week to buy Daytona-based Champion Rent;als for $70 million plus assumption of S18-million debt. Rent-Way said deal, expected to close by Feb. 1, will add immediately to earnings and will be financed by loan, although agreement hasn't been finalized.

Acquisition will give Rent-Way access to new markets in Ala., Ark., Ga. Chain shares markets with Champion in Fla. where latter has 33 stores and competes with Rent-Way in Jacksonville as well as Va. and Ohio. Rent-Way plans to keep Champion's 145 stopes, including 25 outlets opened in 1997, in expanding base to 382 front 187. Champion purchase, combined with acquisition of 50-store Ace TV that's expected to close this week, will increase chain's RTD market share to 4% from 2.5%, spokeswoman said. Rent-Way plans to continue acquisition binge with goal of achieving 6-10% market share by 2000, spokeswoman said.