Under new ownership: Leadership team completes Franchise Group acquisition

DELAWARE, Ohio — The purchase of Franchise Group, owner of Top 100 retailers American Freight and Badcock Home Furniture &more and lease-to-own retailer Buddy’s Home Furnishings, is complete.

A buyer group, including members of the senior management team of the company led by CEO Brian Kahn, in a financial partnership with a consortium that includes certain of Kahn’s affiliate entities, B. Riley Financial, Inc. and Irradiant Partners, successfully completed its acquisition of Franchise Group on Aug. 21.

On Aug. 17, stockholders, including those holding a majority of the outstanding shares of common stock not held by the buying consortium, approved all proposals related to the acquisition, which was reportedly valued at $2.6 billion.

As a result of the merger’s completion, Franchise Group’s common stock and preferred stock ceased trading and is delisted from the Nasdaq Global Select Market.

In connection with the merger, Franchise Group will complete the redemption of all outstanding shares of its 7.50% Series A Cumulative Preferred Stock, par value one cent per share, on Aug. 22.

Jefferies LLC served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal counsel to a special committee of Franchise Group’s independent directors not affiliated with the buyer group. Troutman Pepper Hamilton Sanders LLP served as legal counsel to Franchise Group. Sullivan & Cromwell LLP served as legal counsel to B. Riley Financial, Inc. Willkie Farr & Gallagher LLP served as legal counsel to Kahn.

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