Add-on Acquisition • Retail

Franchise Group Acquires Badcock

On November 22, 2021, Franchise Group acquired retailer Badcock for 580M USD

Acquisition Context
  • This is Franchise Group’s 5th transaction in the Retail sector.
  • This is Franchise Group’s 2nd largest (disclosed) transaction.
  • This is Franchise Group’s 7th transaction in the United States.
  • This is Franchise Group’s 2nd transaction in Florida.
Investment Fate
  • Badcock was divested to a consortium of strategic buyers in 2023.

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M&A Deal Summary

Date November 22, 2021
Target Badcock
Sector Retail
Buyer(s) Franchise Group
Deal Type Add-on Acquisition
Deal Value 580M USD
Advisor(s) Mann, Armistead & Epperson (Financial)
Trenam (Legal)

Target Company

Badcock

Mulberry, Florida, United States
Badcock is a home furnishings company in the southeastern US. 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. Badcock was founded in 1904 and is based in Mulberry, Florida.
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Buyer Overview 1

Buyer

Franchise Group

Milpitas, Virginia, United States

Category Company
Founded 1993
Sector Consumer Services
Employees4
Revenue 2.2B USD (2020)
DESCRIPTION

Franchise Group is a growing North American tax preparation company with over 2,800 stores open in the U.S. and Canada during the 2008 tax season. Franchise Group was founded in 2010 and is based in Milpitas, California.


Deal Context for Buyer #
Overall 7 of 7
Sector: Retail 5 of 5
Type: Add-on Acquisition 7 of 7
State: Florida 2 of 2
Country: United States 7 of 7
Year: 2021 3 of 3
Size (of disclosed) 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-27 Sylvan Learning

Towson, Maryland, United States

Sylvan Learning is a tutoring franchisor for Pre-K-12 students and families in the U.S. The company addresses the full range of student needs with a broad variety of academic curriculums delivered in an omnichannel format. It has a growing footprint and currently has more than 700 locations, in 49 states, including more than 560 physical centers, of which all but six are franchised. Sylvan’s omnichannel platform has helped deliver attractive unit economics to its franchisees. The platform provides franchisees with the ability to provide a range of services, including on-premises, online, one-on-one, and in-group tutoring. Sylvan Learning was founded in 1979 and headquartered in Towson, Maryland.

Buy $81M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2023-12-18 Badcock

Mulberry, Florida, United States

Badcock is a home furnishings company in the southeastern US. 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. Badcock was founded in 1904 and is based in Mulberry, Florida.

Sell -