Franchise Group Tucks In W.S. Badcock For $580M

Franchise Group Inc FRG has acquired W.S. Badcock Corporation, a home furnishings company, for approximately $580 million. W.S. Badcock Corporation operates 383 stores in eight southeastern states.

• Franchise Group expects the transaction to be immediately accretive to earnings.
• For the fiscal year 2022, Franchise Group expects the deal to be at least $0.50 accretive to Non-GAAP EPS.
• J.P. Morgan arranged for $575 million in new term loans to finance the transaction.
• Franchise Group held $159.9 million in cash and equivalents as of September 30, 2021.
• Price Action: FRG shares are trading higher by 9.25% at $49.25 on the last check Monday.