ORLANDO — Franchise Group Inc. has completed its acquisition of Pet Supplies Plus.
The $700 million deal was announced in January.
“We are excited to welcome PSP, its management team, employees and franchisees to Franchise Group,” said Brian Kahn, president and CEO of Franchise Group (NASDAQ: FRG). “We expect that PSP’s unit economics, expansion pipeline and execution track record will bring significant scale and diversification to Franchise Group.”
Founded more than 30 years ago, Pet Supplies Plus is “a mature and rapidly growing pet industry franchisor with a footprint of more than 500 locations, of which almost 60 percent are franchised,” according to a press release. It’s described as “the leading franchisor in the pet industry, with superior unit economics and a turnkey franchise system driving a backlog of more than 185 new stores in various stages of development nationwide.”
In conjunction with the transaction, Franchise Group obtained $1.3 billion in new debt financing. The financing, together with cash on hand, funded the $700 million acquisition of PSP and refinanced the balance of the company’s outstanding term loans and revolving loans.
Franchise Group’s business lines include Pet Supplies Plus, American Freight, The Vitamin Shoppe, Buddy’s Home Furnishings and Liberty Tax Service.