October 4, 2021

Willkie advised Franchise Group in the transaction.

On September 27, Franchise Group, Inc. (NASDAQ: FRG) announced that it has completed the acquisition of Sylvan Learning (Sylvan), a leading tutoring franchisor for Pre-K-12 students and families in the U.S., in an all cash transaction valued at approximately $81 million. For Franchise Group’s fiscal year 2021, Sylvan is estimating total systemwide revenue of approximately $169 million, company revenue of approximately $30 million and Adjusted EBITDA of approximately $12 million. Franchise Group expects that the transaction will be immediately accretive to its Non-GAAP EPS in 2021.

Founded in 1979 and headquartered in Hunt Valley, Maryland, Sylvan is an established and growing franchisor of tutoring services. Sylvan 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 provides franchisees with the ability to provide a range of services, including on-premises, online, one-on-one and in group tutoring.

Franchise Group is an owner and operator of franchised and franchisable businesses that continually looks to grow its portfolio of brands while utilizing its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise Group’s business lines include Pet Supplies Plus, American Freight, The Vitamin Shoppe, Buddy’s Home Furnishings and Sylvan Learning. On a combined basis, Franchise Group currently operates over 2,600 locations predominantly located in the U.S. that are either company-run or operated pursuant to franchising agreements.

The Willkie team was led by partners Daniel Mun and Russell Leaf, and included partners Rose Ohanesian, Guy Inbar and Matthew Makover, as well as corporate associate Reginald St. Louis.