CONN - Conn's Inc. Announces Transformative Transaction with W.S. Badcock LLC | Benzinga
- Accelerates growth opportunities by combining two complementary businesses with similar product categories, payment solutions and customer profiles
- Combines Conn's in-house credit platform and expertise with Badcock's existing financing capabilities
- Increases scale and expands Conn's presence across the southeastern U.S., creating one of the largest home goods retailers with 550+ stores across 15 states and approximately $1.85 billion in revenue
- Strengthens financial profile with over $50 million of expected cost synergies on a run-rate basis in 18 months, enhances Conn's balance sheet by bringing approximately $125 million of incremental liquidity with the addition of Badcock collateral and extends debt maturities by three years
- Names Norm Miller President and CEO of the combined company
THE WOODLANDS, Texas, Dec. 18, 2023 (GLOBE NEWSWIRE) -- Conn's, Inc. (NASDAQ:CONN) ("Conn's" or the "Company"), a specialty retailer of home goods, including furniture and mattresses, appliances, and consumer electronics, today announced that it has consummated a transaction that has resulted in W.S. Badcock LLC ("Badcock"), a leading home furnishings company in the southeastern U.S., becoming a wholly-owned subsidiary of the Company. The all-stock transaction was unanimously approved by Conn's Board of Directors. Conn's also announced that Norman L. Miller has been named President and CEO of Conn's, Inc. Mr. Miller has served as a Conn's Board Member since September 2015 and as interim President and CEO since October 2022. He previously served as Conn's President and CEO from September 2015 to August 2021 and Executive Chairman from August 2021 until April 2022.
Founded in 1904, Badcock operates nearly 380 stores in eight southeastern states comprised of 65+ corporate locations and 310+ independent dealer owned stores. The stores are branded "Badcock Home Furniture & more" and provide customers with furniture, appliances, bedding, electronics, home office equipment, accessories, and seasonal items. Badcock offers customers affordable payment plans, including Badcock Easy Purchase, an in-house payment solution. Mitchell Stiles, President and COO of Badcock, will lead Badcock and report to Conn's CEO, Norm Miller.
"Today's announcement represents one of the most significant events in the Company's over 120-year history," said Bob Martin, Conn's lead independent director. "The combination immediately positions Conn's as a leading home goods retailer across the southern U.S. It also supports our existing strategic growth priorities by providing our unmatched payment options, leading eCommerce capabilities, and premium shopping experience to more customers. In addition, on behalf of Conn's Board of Directors, I am pleased to announce that Norm Miller has been named President and CEO of the combined company. Norm is a proven leader, who previously led Conn's to multiple record setting years of profitable growth. The Badcock transaction significantly enhances Conn's scale allowing us to leverage a powerful infrastructure and deliver strong financial returns for many years to come."
The transaction brings together two highly complementary companies with significant reach across 15 states and powered by best-in-class payment offerings, compelling eCommerce capabilities, and a premium shopping experience. The combined company is expected to have annual revenue of approximately $1.85 billion across 240+ corporate owned stores and 310+ dealer locations, with eCommerce sales of approximately $125 million. Conn's will become a top-20 furniture and mattress retailer in the U.S. according to Furniture Today's latest top 100 list. In addition, Conn's will now provide last-mile delivery to over 92% of the population that resides in the 15 states in which it operates. The combined company will also have a credit portfolio of $1.1 billion, projected to generate approximately $364 million in annual finance charges and other revenue. Management expects to realize over $50 million in run-rate cost savings from the Badcock transaction in 18 months, with further upside expected in the future, supported by improved procurement, logistics, general and administrative, and corporate expenses as well as credit optimization opportunities.
Norm Miller, President and CEO of Conn's, said, "Today's announcement transforms Conn's into a leading home goods retailer that is expected to have $1.85 billion in revenue across strong urban and rural markets in the southern U.S. We believe the combination of these two complementary businesses will produce significant value as ...