bebe stores, inc. Announces Acquisition of 47 Franchise Locations from Franchise Group, Inc. for $35 million
bebe stores, inc. (OTCQB:BEBE) has announced a pivotal acquisition of 47 Buddy’s Home Furnishings rent-to-own franchises from Franchise Group, Inc. for $35 million. This agreement allows bebe to establish more franchises in protected areas across the Southeastern U.S. CEO Manny Mashouf emphasized that this acquisition will enhance cash flow and diversify profits, leveraging existing net operating loss carryforwards. The transaction is supported by a $22 million secured loan and a $1.5 million primary share purchase by B. Riley Financial at $5.00 per share.
- Acquisition expected to be materially accretive to cash flow.
- Diversifies profit streams and utilizes net operating loss carryforwards effectively.
- Potential for future growth in protected areas through franchise development.
- None.
SAN FRANCISCO--(BUSINESS WIRE)--bebe stores, inc. (OTCQB:BEBE) (the “Company”) today announced the purchase of 47 Buddy’s Home Furnishings rent-to-own franchises from Franchise Group, Inc. (Nasdaq:FRG) for
“This is a transformational acquisition that will not only be materially accretive to bebe’s cash flow over time, but also provides a platform for future growth through the development agreement,” said bebe CEO, Manny Mashouf. “The acquired Buddy’s stores have a strong and consistent record of free cash flow generation across multiple market cycles. This acquisition diversifies bebe’s profit stream and better utilizes existing net operating loss carryforwards. Additionally, the expanded operational infrastructure being developed for this transaction can be leveraged to support additional acquisitions of high free cash flow entities in the future.”
The transaction will be funded by a 1.5 million primary share purchase by B. Riley Financial (Nasdaq: RILY) at a price of
About bebe stores, inc.
bebe is a global specialty licensor of women’s apparel and accessories that distributes bebe branded products worldwide through its licensees in approximately 100 international stores and www.bebe.com.
