Add-on Acquisition • Retail

Franchise Group Acquires FFO Home

On December 28, 2020, Franchise Group acquired retailer FFO Home from Sun Capital Partners

Acquisition Context
  • This is Franchise Group’s 3rd transaction in the Retail sector.
  • This is Franchise Group’s 4th transaction in the United States.
  • This is Franchise Group’s 1st transaction in Arkansas.

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M&A Deal Summary

Date December 28, 2020
Target FFO Home
Sector Retail
Buyer(s) Franchise Group
Sellers(s) Sun Capital Partners
Deal Type Add-on Acquisition

Target Company

FFO Home

Fort Smith, Arkansas, United States
Furniture Factory Outlet (FFO Home) is a furniture retailer that provided the lowest prices to our customers day-in-and-day-out. The company operates 36 retail stores in Arkansas, Missouri, Oklahoma, and Kansas. FFO Home also manufactures bedding under the Comfort Coil and Natural Elements brands. The retailer offers superior value products priced below the competition and distinguishes itself by eschewing the showroom distribution model and allowing consumers to purchase products immediately from on-site inventory. FFO Home was founded in 1984 and is headquartered in Fort Smith, Arkansas.
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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 4 of 7
Sector: Retail 3 of 5
Type: Add-on Acquisition 4 of 7
State: Arkansas 1 of 1
Country: United States 4 of 7
Year: 2020 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-12-30 American Freight Group

Columbus, Ohio, United States

American Freight Group, Inc. is a furniture retailer. American Freight Group was founded in 1994 and is based in Columbus, Ohio.

Buy $450M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-25 Pet Supplies Plus

Livonia, Michigan, United States

Pet Supplies Plus is a pet specialty retailer in the United States by total system sales, providing a wide variety of pet food, treats, hard goods and services for dogs, cats, and small animals. Pet Supplies Plus was founded in 1988 and is based in Livonia, Michigan.

Buy $700M

Seller Profile 1

SELLER

Sun Capital Partners

Boca Raton, Florida, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 13.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Sun Capital's corporate headquarters in Boca Raton, Florida.
Sun Capital's corporate headquarters in Boca Raton, Florida.

Sun Capital Partners is a large private equity firm focused on leveraged buyouts, equity, debt, and other control investments in North America, Asia, and Europe. Sun looks for businesses that can benefit from the Firm's operating experience including underperformers, turnarounds, and special situations. Target companies typically have $50 million to $1 billion in revenue with strong market positions. Sectors of interest include paper and packaging, food and beverages, metals and mining, automotive after-market parts, consumer products, financial services, healthcare, media and communications, building products, telecommunications, technology, retailing and catalogs, restaurants, manufacturing and industrial. Sun Capital was formed in 1995 and is based in Boca Raton, Florida.


Deal Context for Seller #
Overall 113 of 131
Sector: Retail 22 of 24
Type: Add-on Acquisition 45 of 55
State: Arkansas 1 of 1
Country: United States 81 of 90
Year: 2020 6 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-01 Calcium Products

Ames, Iowa, United States

Calcium Products produces pelletized limestone and calcium for agriculture and commercial applications. Calcium Products was founded in 1987 and is based in Ames, Iowa.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-03-04 Exadel

Walnut Creek, California, United States

Exadel is a software engineering company that offers custom development services with R&D centers in North America and Eastern Europe. Exadel offers the specialized skills and product-development culture required to meet the needs of the most innovative enterprises. Exadel was founded in 1998 and is based in Walnut Creek, California.

Buy -