Trenam Represents Major Furniture Retailer in $580 Million Acquisition
Published by The Ledger on November, 26, 2021
Mulberry-based W.S. Badcock acquired by Franchise Group Inc. for $580 million
Paul Nutcher The Ledger
Published 10:08 a.m. ET Nov. 26, 2021
LAKELAND – Franchise Group Inc. announced this week that it has acquired W.S. Badcock Corp. in a cash transaction valued at approximately $580 million.
Mulberry-based Badcock operates 383 stores in eight Southeastern states comprised of 68 corporate locations and 315 independent dealer owned stores.
Founded in 1904, 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., W.S. Badcock’s board chairman, in a news release issued on Monday by Franchise Group.
“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,” he said.
Brian Kahn, president and 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,” Kahn said.
“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.”
For the fiscal year ending June 30, Badcock generated consolidated revenue of about $901.9 million and adjusted earnings before interest, taxes, depreciation and amortization of about$139.5 million.
J.P. Morgan arranged for $575 million in new term loans to finance the transaction. Willkie Farr & Gallagher LLP, Troutman Pepper Hamilton Sanders LLP and DLA Piper LLP served as legal counsel to Franchise Group. Mann, Armistead & Epperson, Ltd. served as financial advisor and Trenam Law served as legal counsel to W.S. Badcock.