November 23, 2021

Willkie represented Franchise Group in the transaction.

Willkie represented Franchise Group, Inc. (NASDAQ: FRG) in its acquisition of W.S. Badcock Corporation, which is a leading home furnishings company in the Southeast U.S. in an all cash transaction valued at approximately $580 million.

Franchise Group acquired W.S. Badcock Corporation with proceeds from a new first lien term loan and new second lien term loan. In connection with the entry into the new term loan credit facilities, the company also amended its existing ABL, first lien and second lien credit facilities.

Founded in 1904, W.S. Badcock Corporation operates 383 stores in eight southeastern states comprised of 68 corporate locations and 315 independent dealer owned stores. 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.

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. FRG’s business lines include Pet Supplies Plus, American Freight, The Vitamin Shoppe, Badcock Home Furniture & more, Buddy’s Home Furnishings and Sylvan Learning. On a combined basis, FRG currently operates over 3,000 locations predominantly located in the U.S. that are either company-run or operated pursuant to franchising and dealer agreements.

The Willkie team was led by Daniel Mun and Russell Leaf, and included partner Andres Mena; counsel Charlotta Chung; and associates Kevin Kitson, Ransel Potter and Melissa Fischetti.