Franchise Group, Inc. Closes on the Acquisition of Pet Supplies Plus
Franchise Group Completes $1.3 Billion Refinancing
Franchise Group, Inc. (NASDAQ: FRG) has successfully completed its acquisition of Pet Supplies Plus (PSP) for $700 million, funded by $1.3 billion in new debt financing. This financing also refinances existing loans, enhancing Franchise Group's capital structure. CEO Brian Kahn expressed optimism about PSP’s unit economics and growth potential, which are expected to strengthen Franchise Group's market position and diversification strategy.
- Acquisition of Pet Supplies Plus for $700 million increases market presence.
- New debt financing of $1.3 billion improves capital structure.
- Expected synergies from PSP's operational efficiency and expansion pipeline.
- Increased debt levels may pressure cash flow and financial stability.
Completes
ORLANDO, Fla., March 10, 2021 (GLOBE NEWSWIRE) -- Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) today announced the completion of its previously announced acquisition of Pet Supplies Plus (“PSP”), a leading omnichannel retail chain and franchisor of pet supplies and services.
In conjunction with the closing of its acquisition of PSP, Franchise Group obtained
Brian Kahn, President & CEO of Franchise Group said, “We are excited to welcome PSP, its management team, employees and franchisees to Franchise Group. We expect that PSP’s unit economics, expansion pipeline and execution track record will bring significant scale and diversification to Franchise Group.”
About Franchise Group
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, American Freight, The Vitamin Shoppe, Buddy’s Home Furnishings, and Liberty Tax Service. On a combined basis, Franchise Group currently operates over 4,600 locations predominantly located in the U.S. and Canada that are either Company-run or operated pursuant to franchising agreements.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, those that contain, or are identified by, words such as “outlook”, “guidance”, “believes”, “expects”, “potential”, “continues”, “may”, “will”, “should”, “predicts”, “intends”, “plans”, “estimates”, “anticipates”, “could” or the negative version of these words or other comparable words. Forward-looking statements include, without limitation, projections, predictions, expectations, or beliefs about future events or results and are not statements of historical fact, including the Company’s expectations regarding its financial condition, the performance of PSP and the success of PSP, the Company’s strategic growth plans and the effects of the coronavirus (COVID-19) pandemic on economic conditions and the industry in general, the success of the Company’s financing efforts and the financial position and operating results of the Company. 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. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2020, 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.
Franchise Group Investor Relations Contact:
Andrew F. Kaminsky
EVP & Chief Administrative Officer
Franchise Group, Inc.
akaminsky@franchisegrp.com
(914) 939-5161
FAQ
What was the acquisition cost of Pet Supplies Plus by Franchise Group?
How much debt financing did Franchise Group secure for the acquisition?
What are the expected benefits of acquiring Pet Supplies Plus?
What financial impact does the new debt financing have on Franchise Group?
