FRG - Franchise Group to buy Pet Supplies Plus for $700M

Franchise Group (FRG) will acquire Pet Supplies Plus ((PSP)), a leading omnichannel retail chain and franchisor of pet supplies and services, in an all-cash transaction valued at ~$700M from affiliates of Sentinel Capital Partners.The company estimates that the NPV of the tax benefits related to the transaction is expected to be ~$100M.For the fiscal year 2020, PSP estimates total systemwide revenue of ~$1.2B, company revenue of over $825M, and Adjusted EBITDA of nearly $80M.The transaction will be immediately accretive to FRG's Non-GAAP EPS in 2021.Franchise Group management will update its guidance inclusive of PSP upon closing the Transaction.The deal is expected to close in March 2021 and result in systemwide annualized revenue for Franchise Group (total sales for both franchise and Company units) of more than $3.6B.Press Release

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Franchise Group to buy Pet Supplies Plus for $700M