SAN FRANCISCO--(BUSINESS WIRE)--
bebe stores, inc. (OTCQB:BEBE) (the “Company”) today announced the purchase of 47 Buddy’s Home Furnishings rent-to-own franchises from Franchise Group, Inc. (Nasdaq:FRG) for $35 million. The agreement also grants bebe the rights to build additional franchises in protected geographies throughout the Southeastern United States.
“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 bebe CEO, Manny Mashouf. “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.”
The transaction will be funded by a 1.5 million primary share purchase by B. Riley Financial (Nasdaq: RILY) at a price of $5.00 per share, a $22 million secured loan led by MILFAM, LLC, and available cash on hand.
About bebe stores, inc.
bebe is a global specialty licensor of women’s apparel and accessories that distributes bebe branded products worldwide through its licensees in approximately 100 international stores and .
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