Specialty licensor of women’s apparel and accessories bebe stores inc. has purchased 47 Buddy’s Home Furnishings rent-to-own franchises from Franchise Group Inc. for $35 million. The agreement also grants bebe the rights to build additional franchises in protected geographies throughout the southeastern U.S. This is the company’s first foray into the home furnishings vertical.
“This is a transformational acquisition that will not only be materially accretive to bebe’s cash flow over time, but also provides a platform for future growth through the development agreement,” said Manny Mashouf, CEO of bebe in a statement. “The acquired Buddy’s stores have a strong and consistent record of free cash flow generation across multiple market cycles. This acquisition diversifies bebe’s profit stream and better utilizes existing net operating loss carryforwards. Additionally, the expanded operational infrastructure being developed for this transaction can be leveraged to support additional acquisitions of high free cash flow entities in the future.”
Currently, the retailer distributes bebe-branded products worldwide through its licensees in approximately 100 international stores and online at bebe.com.
Advertisement
