Franchise Group gets financing commitment for buyout by management

By Sara Rosenberg

New York, May 10 – Franchise Group Inc. has received financing commitments from third party lenders to help fund its acquisition by members of senior management led by Brian Kahn, the company’s chief executive officer, in financial partnership with a consortium that includes B. Riley Financial Inc. and Irradiant Partners, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The buyout group is purchasing the roughly 64% of the company’s issued and outstanding common stock that the management group does not presently own or control for $30 in cash per share. The transaction has an enterprise value of about $2.6 billion, including net debt and outstanding preferred stock.

There is a 30 day “go shop” period.

Closing is expected in the second half of this year, subject to customary conditions, including regulatory approval and stockholder approval.

Jefferies LLC is serving as financial adviser to the special committee.

Franchise Group is a Delaware, Ohio-based owner and operator of franchised and franchisable businesses.

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