Franchise Group Inc. (Virginia Beach) announced it has entered into a definitive agreement under which it will acquire Pet Supplies Plus (Livonia, Mich.) in an all-cash transaction valued at approximately $700 million, according to a press release. The transaction is expected to close in March and result in systemwide annualized revenue for Franchise Group of more than $3.6 billion.
Founded more than 30 years ago, Pet Supplies Plus is a growing pet industry franchisor with more than 500 locations. The company has a diversified revenue model comprised of corporate store revenue, royalties and revenue from internal distribution franchises.
Brian Kahn, President and CEO of Franchise Group, said in a company press release: “We look forward to welcoming Pet Supplies Plus, its management team, employees, franchisees and neighbors to Franchise Group when this transaction closes. Pet Supplies Plus adds another franchise concept with strong unit economics, diversification into an economically resilient and secularly growing pet industry, and a brand that has and will continue to experience robust unit expansion from its franchise system.”