_ap_ufes{"success":true,"siteUrl":"electros24.com","urls":{"Home":"https://electros24.com","Category":"https://electros24.com/category/camera/","Archive":"https://electros24.com/2021/12/","Post":"https://electros24.com/cm4536c-gracie-oaks-ohio-radnor-farmhouse-style-light-gray-finish-wood-nesting-coffee-table-with-storage-ottomans/","Page":"https://electros24.com/comment-on-appendicitis-can-it-happen-to-me-by-best-cordless-drill/#new_tab","Attachment":"https://electros24.com/cm4536c-gracie-oaks-ohio-radnor-farmhouse-style-light-gray-finish-wood-nesting-coffee-table-with-storage-ottomans//","Nav_menu_item":"https://electros24.com/60308/","Forminator_forms":"https://electros24.com/?post_type=forminator_forms&p=59611","Elementor_library":"https://electros24.com/?elementor_library=default-kit","Product":"https://electros24.com/product/redthunder-60-mechanical-gaming-keyboard-61-keys-ultra-compact-wired-mini-keyboard-rainbow-rgb-backlight-for-typist-laptop-pc-mac-gamer-white-blue-switch/","Wpcf7_contact_form":"https://electros24.com/?post_type=wpcf7_contact_form&p=46307","Mailpoet_page":"https://electros24.com/?mailpoet_page=subscriptions","Wp_automatic":"https://electros24.com/wp_automatic/mobile-apps/","Wp_radio":"https://electros24.com/station/gees-gospel-radio/"}}_ap_ufee

Franchise Group, Inc. Acquires W.S. Badcock Corporation


PhotoCaption



Franchise Group , Inc. announced that it has completed the acquisition of W.S. Badcock Corporation, a leading home furnishings company in the Southeast U.S., in an all cash transaction valued at approximately $580 million.  

Founded in 1904, W.S. Badcock Corporation operates 383 stores in eight southeastern states comprised of 68 corporate locations and 315 independent dealer owned stores. The stores are branded “Badcock Home Furniture & more” and carry a complete line of furniture, appliances, bedding, electronics, home office equipment, accessories and seasonal items.  

 

“Protecting the legacy of our 117-year old family-owned business, which has been grown through five generations, our relationships with customers, vendors, dealers, employees, and our deep ties to the local communities in which we operate, have always been of utmost important to us,” said Bill Pou, Jr., Chairman of the Board of W.S. Badcock Corporation.  Mr. Pou further commented, “We wanted to find a buyer who would respect our company’s long and storied history and, in Franchise Group, we immediately recognized a management group and a company that shared our values and will help W.S. Badcock build upon the legacy created by the current family and those who preceded us. We are confident that we are leaving our treasured company in good hands and that this decision will help to produce a winning combination for our customers, vendors, dealers and employees.”  

 

Brian Kahn, President & CEO of Franchise Group, said, “A sincere thank you to the Badcock family for entrusting their 117-year legacy to Franchise Group. We are very excited to welcome the Badcock management team, employees, dealers and customers to Franchise Group. Besides potential significant standalone earnings accretion for the Company, the addition of Badcock adds scale to, and anticipated synergies with our existing home furnishings franchise concepts, which we are confident will specifically benefit American Freight and Buddy’s franchisees and customers. Over its long history, Badcock has allocated capital among three discrete business lines: a retail footprint consisting of 383 locations; a real estate portfolio consisting of three distribution centers, 38 retail locations, and 27 corporate and certain other locations; and a consumer credit business that currently includes approximately $550 million of gross receivables. We look forward to partnering with Badcock’s management team in assessing their highest and best uses of capital and evaluating alternatives for certain non-core assets to rapidly de-lever Franchise Group back to our target net leverage ratio of 2-3x adjusted EBITDA. We also look forward to evaluating and implementing programs that may offer Badcock customers more options and greater flexibility, which we think will lead to higher revenue and profitability for Badcock dealers, similar to the process that led to improved unit economics for our Buddy’s and American Freight brands.”

J.P. Morgan arranged for $575 million in new term loans to finance the transaction.

 


 

About W.S. Badcock Corporation

Founded in 1904, W.S. Badcock Corporation is one of the largest privately held home furnishings companies in the United States. Headquartered in Mulberry, Florida, its more than 380 corporate and associate dealer stores employ more than 2,500 employees in eight southeastern states. Its branded Badcock Home Furniture &more stores carry a complete line of furniture, appliances, bedding, electronics, home office, accessories, and seasonal items while offering easy in-house financing for its customers. The company was named “2018 Retailer of the Year” by the National Home Furnishings Association. For more information visit www.badcock.com.

 

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, Badcock Home Furniture & more, Buddy’s Home Furnishings and Sylvan Learning. On a combined basis, Franchise Group currently operates over 3,000 locations predominantly located in the U.S. that are either Company-run or operated pursuant to franchising and dealer agreements.

 


Furniture Industry News and in depth magazine articles for the furniture retail, furniture manufacturers, and furniture distributors.


Read other articles by Nic Ledoux





Source link

We will be happy to hear your thoughts

Leave a reply

Electronics 24
Logo
Reset Password
Shopping cart