W.S. Badcock Corp. has been acquired by Franchise Group in an all-cash deal valued at about $580 million.
And this isn’t the group’s first move into furniture, as they also previously purchased American Freight and Buddy’s.
Badcock has 383 stores in eight states—68 corporate locations and 315 independent dealer-owned stores branded as Badcock Home Furniture & more—as well as three distribution centers.
In the release, Franchise Group President and CEO Brian Kahn said that Badcock “adds scale to, and anticipated synergies with our existing home furnishings franchise concepts, which we are confident will specifically benefit American Freight and Buddy’s franchisees and customers.”
Badcock generated consolidated revenue of about $901.9 million last fiscal year, and adjusted earnings before interest, taxes, depreciation and amortization were around $139.5 million, according to the company.
“We look forward to evaluating and implementing programs that may offer Badcock customers more options and greater flexibility, which we think will lead to higher revenue and profitability for Badcock dealers, similar to the process that led to improved unit economics for our Buddy’s and American Freight brands,” Khan said.
