Franchise Group Acquires American Freight Group and Completes $675 Million Debt Financing

February 20, 2020

Willkie represented Franchise Group, Inc. in connection with its acquisition (and related debt financing) of home furnishings retail chain American Freight Group, Inc.

On February 14, American Freight Group, Inc. was acquired by a newly formed subsidiary of Franchise Group, Inc., represented by Willkie, in an all-cash merger transaction. American Freight is a retail chain offering furniture, mattresses and home accessories at unmatched prices.

Franchise Group consummated a $675 million debt financing to fund the acquisition of American Freight, as well as refinance its existing credit facilities at Franchise Group’s Buddy’s Home Furnishings and Sears Outlet subsidiaries.

These transactions were intended as a further step in a strategic transformation of Franchise Group following its 2019 acquisitions of the Buddy’s Home Furnishings and Sears Outlet businesses. Franchise Group is an operator of franchised and franchisable businesses and uses its operating expertise to drive cost efficiencies and grow its brands. Franchise Group’s business lines now include Liberty Tax Service, Buddy’s Home Furnishings, Sears Outlet, The Vitamin Shoppe and American Freight.

The Willkie deal team was led by partners Russell Leaf, Daniel Mun and David Tarr.