Franchise Group, Inc. Announces Receipt of Unsolicited Proposal

Rhea-AI Summary

Franchise Group, Inc. (NASDAQ: FRG) announced an unsolicited non-binding proposal to acquire all outstanding shares at $30.00 per share in cash. The Board of Directors will evaluate the proposal to determine the best course of action for the company and its shareholders. There is no guarantee that this proposal will lead to a transaction. Franchise Group operates over 3,000 franchised locations across various brands, focusing on strong cash flow generation for its stakeholders. This announcement comes amidst ongoing evaluations of financial performance and strategic direction.

Positive

• Proposal to acquire shares at $30.00 per share indicates strong market interest.
• Company operates over 3,000 locations, which reflects a robust business model.

Negative

• The proposal is non-binding and may not result in an actual transaction.
• The future actions of the company regarding the proposal remain uncertain.

DELAWARE, Ohio, March 20, 2023 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group,” “FRG” or the “Company”) today announced that it has received an unsolicited non-binding proposal, which is subject to certain conditions, to acquire all of the outstanding shares of the common stock of the Company for a price of $30.00 per share in cash.

The Board of Directors will carefully evaluate the proposal to determine the course of action that it believes is in the best interests of the Company and all FRG stockholders. The Company makes no assurance that the proposal will result in a transaction.

About Franchise Group, Inc.
Franchise Group is an owner and operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise Group’s business lines include Pet Supplies Plus, Wag N’ Wash, American Freight, The Vitamin Shoppe, Badcock Home Furniture & More, Buddy’s Home Furnishings and Sylvan Learning. On a combined basis, Franchise Group currently operates over 3,000 locations predominantly located in the U.S. that are either Company-run or operated pursuant to franchising and dealer agreements.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results and are not statements of historical fact. Such statements may include statements regarding the Company’s evaluation of the non-binding proposal. Such forward-looking statements are based on various assumptions as of the time they are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are often accompanied by words that convey projected future events or outcomes such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “opportunity,” “potential,” or words of similar meaning or other statements concerning opinions or judgment of the Company or its management about future events. Although the Company believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance, or achievements of the Company will not differ materially from any projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, many of which are beyond the control of the Company. The Company refers you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Form 10-K for the fiscal year ended December 31, 2022, and comparable sections of the Company’s Quarterly Reports on Form 10-Q and other filings, which have been filed with the SEC and are available on the SEC’s website at www.sec.gov. All of the forward-looking statements made in this press release are expressly qualified by the cautionary statements contained or referred to herein. The actual results or developments anticipated may not be realized or, even if substantially realized, they may not have the expected consequences to or effects on the Company or its business or operations. Readers are cautioned not to rely on the forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made and the Company does not undertake any obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Andrew F. Kaminsky
EVP & Chief Administrative Officer
Franchise Group, Inc.
akaminsky@franchisegrp.com
(914) 939-5161

FAQ

What is the recent acquisition proposal for Franchise Group, Inc.?

Franchise Group received a proposal to acquire all outstanding shares for $30.00 each.

When was the acquisition proposal announced for FRG?

The proposal was announced on March 20, 2023.

What does the proposal for FRG entail?

The proposal is non-binding and subject to certain conditions.

How will Franchise Group evaluate the acquisition proposal?

The Board of Directors will evaluate the proposal to determine the best action for the company.

What is the potential impact of the proposal on FRG shareholders?

While the proposal indicates interest from potential buyers, it does not guarantee a transaction.