M&A Deal Summary

Franchise Group Acquires Pet Supplies Plus

On January 25, 2021, Franchise Group acquired retailer Pet Supplies Plus from Sentinel Capital Partners, Golub Capital and NMP Capital for 700M USD

Acquisition Highlights
  • This is Franchise Group’s 4th transaction in the Retail sector.
  • This is Franchise Group’s largest (disclosed) transaction.
  • This is Franchise Group’s 5th transaction in the United States.
  • This is Franchise Group’s 1st transaction in Michigan.

M&A Deal Summary

Date 2021-01-25
Target Pet Supplies Plus
Sector Retail
Buyer(s) Franchise Group
Sellers(s) Sentinel Capital Partners
Golub Capital
NMP Capital
Deal Type Add-on Acquisition
Deal Value 700M USD
Advisor(s) Piper Sandler & Co.
North Point Advisors LLC
Robert W. Baird & Co., Inc. (Financial)
Kramer Levin Naftalis & Frankel (Legal)

Target

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.

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Buyer(S) 1

Buyer

Franchise Group

Virginia Beach, Virginia, United States

Category Company
Founded 2010
Sector Consumer Services
Employees4,758
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 Virginia Beach, Virginia.


DEAL STATS #
Overall 5 of 7
Sector (Retail) 4 of 5
Type (Add-on Acquisition) 5 of 7
State (Michigan) 1 of 1
Country (United States) 5 of 7
Year (2021) 1 of 3
Size (of disclosed) 1 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-28 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.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-22  Liberty Tax

Virginia Beach, Virginia, United States

Liberty Tax is a nationwide tax return preparation and related services firm that offers services through online solutions. Liberty Tax was formed in 1997 and is based in Virginia Beach, Virginia.

Sell $252M

Seller(S) 3

SELLER

Sentinel Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1995
PE ASSETS 11.2B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Sentinel Capital Partners is a private equity firm that targets investments in middle-market companies with strong management and 'attractive growth prospects'. Sentinel looks to invest up to $400 million of equity in companies generating EBITDA of up to $65 million. Sectors of interest include business services/outsourcing, consumer products and services, food and restaurants, franchising, and manufacturing. Prospective transaction situations include management buyouts, recapitalizations, corporate divestitures, take-privates, and growth capital financings. Sentinel Capital Partners was formed in 1995 and is based in New York, New York.


DEAL STATS #
Overall 58 of 69
Sector (Retail) 4 of 4
Type (Add-on Acquisition) 14 of 17
State (Michigan) 2 of 2
Country (United States) 52 of 62
Year (2021) 1 of 6
Size (of disclosed) 2 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-11-17 GSM Outdoors

Irving, Texas, United States

GSM Outdoors specializes in developing and marketing innovative products for the hunting, sport shooting, and rugged outdoor enthusiast market. GSM owns 20+ industry-leading brands including stealth cam, walker’s, muddy outdoors, birchwood casey, hawk, cyclops, western rivers, american hunter, HME, and SME among others. GSM’s strong focus on innovation, product development, rigorous quality control, and customer support has earned it a reputation for delivering top quality outdoor gear backed by industry-leading customer service. GSM Outdoors was founded in 1999 and is based in Irving, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-01 MB2 Dental Solutions

Carrollton, Texas, United States

MB2 Dental Solutions is a dental service organization that serves as a partner to affiliated dentists and practice owners. MB2 provides affiliated dental offices with a suite of services to help them run dental practices more efficiently, allowing them to focus on providing exceptional patient care at their practice. MB2 Dental Solutions is based in Carrollton, Texas.

Sell -
SELLER

Golub Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Lender
Founded 1994
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Golub Capital is a private investment firm focused on making debt and equity investments in US based middle-market companies. Golub looks to invest between $5 and $75 million in businesses with established operating cash flow, strong customer relationships, and 'sustainable proprietary positions in their markets'. Prospective investment structures include refinancings, recapitalizations, buyouts, and growth financings. Sectors of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub Capital was formed in 1994 and maintains offices in New York City, Atlanta, and Chicago.


DEAL STATS #
Overall 23 of 41
Sector (Retail) 2 of 4
Type (Add-on Acquisition) 9 of 19
State (Michigan) 1 of 1
Country (United States) 23 of 39
Year (2021) 3 of 10
Size (of disclosed) 2 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-12 Statlab Medical Products

McKinney, Texas, United States

Statlab Medical Products is a developer and manufacturer of cost-effective histology, cytology, and immunohistochemistry diagnostic supplies. StatLab offers 1,750 of the most commonly purchased diagnostic supplies used by independent and hospital-based anatomic pathology laboratories. Statlab Medical Products was founded in 1976 and is based in McKinney, Texas.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-28 Delinea

San Francisco, California, United States

Delinea is a provider of Privileged Access Management (PAM) solutions for the modern, hybrid enterprise. The Delinea Platform seamlessly extends PAM by providing authorization for all identities, granting access to an organization's most critical hybrid cloud infrastructure and sensitive data to help reduce risk, ensure compliance, and simplify security. Delinea was formed in 2004 and is based in San Francisco, California.

Sell -
SELLER

NMP Capital

Minneapolis, Minnesota, United States

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 2000
PE ASSETS 4.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NMP Capital is an independent investment firm focused on providing junior capital to a variety of lower middle-market companies in partnership with financial sponsors. NMP looks to commit $20 to $75 million in profitable companies with at least $10 million of EBITDA. NMP will consider opportunities in a wide range of industries including distribution, manufacturing, healthcare, and consumer. NMP Capital was formed in 2000 and is based in Minneapolis, Minnesota.


DEAL STATS #
Overall 45 of 53
Sector (Retail) 1 of 1
Type (Add-on Acquisition) 21 of 26
State (Michigan) 4 of 4
Country (United States) 43 of 51
Year (2021) 1 of 5
Size (of disclosed) 5 of 16
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-11 Red Monkey Foods

Springfield, Missouri, United States

Red Monkey Foods is a provider of organic spices, seasonings, and other natural dry food products. Operating out of a state-of-the-art facility, the company manages gourmet store brand programs for many of the nation’s largest food, mass, and specialty retailers. Red Monkey Foods was founded in 2002 and is based in Springfield, Missouri.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-01 recteq

Evans, Georgia, United States

recteq is a designer, marketer, and direct seller of premium pellet grills, accessories, and other consumable products. recteq’s continued technology-driven product innovation, direct-to-consumer distribution model, and top-notch customer service position recteq as a premium brand in the pellet grill space. recteq was founded in 2009 and is based in Evans, Georgia.

Buy -