Deal Details

PSP Is Acquired by Franchise Group

Consumer

PSP, a portfolio company of Sentinel, sale to Franchise Group

Summary

Pet Supplies Plus (“PSP” or the “Company”), a portfolio company of Sentinel Capital Partners ("Sentinel"), was recently acquired by Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group”) for a purchase price of approximately $700 million in cash.

Baird served as financial advisor to Pet Supplies Plus on this transaction.

About

PSP is a mature and rapidly growing pet industry franchisor with a footprint of more than 500 locations, of which almost 60% are franchised. The Company is 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. PSP has a diversified revenue model comprised of corporate store revenue, royalties and revenue from internal distribution to franchisees. Additionally, PSP has developed broad and deep omnichannel capabilities, offering its neighbors varied cost-competitive shopping options through its convenient neighborhood locations, direct-to-consumer local delivery and buy-online-pickup-in-store model. The Company is headquartered in Livonia, Michigan.

Sentinel specializes in buying and building businesses in the lower midmarket in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of established businesses with EBITDA of up to $65 million. Sentinel also invests in special situations, including balance sheet restructurings and operational turnarounds.

Franchise Group is an 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 business lines include Liberty Tax Service, Buddy’s Home Furnishings, American Freight and The Vitamin Shoppe. On a combined basis, Franchise Group currently operates over 4,100 locations predominantly located in the U.S. and Canada that are either Company-run or operated pursuant to franchising agreements. Franchise group is headquartered in Delaware, OH.

Consumer

PSP, a portfolio company of Sentinel, sale to Franchise Group