FRG - Franchise Group buys W.S. Badcock Corporation for about $580 million in cash

W.S. Badcock Corporation operates 383 stores in eight southeastern states comprised of 68 corporate locations and 315 independent dealer-owned stores. For fiscal year-end June 30, 2021, Badcock generated consolidated revenue of ~$901.9 million and Adjusted EBITDA of approximately $139.5 million. Franchise Group (NASDAQ:FRG) believes that Badcock’s consolidated Adjusted EBITDA for its last fiscal year benefited indirectly by up to $50 million due to its customers receiving COVID-19 related government stimulus payments in 2021. For the fiscal year 2022, Franchise Group (FRG) expects the deal will 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. The company will provide consolidated 2022 financial expectations inclusive of Badcock in December.

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Franchise Group buys W.S. Badcock Corporation for about $580 million in cash