Franchise Group, Inc. Completes Sale of Liberty Tax to NextPoint Acquisition Corp.
Announces repayment of $ 182 million in debt
ORLANDO, Florida, July 06, 2021 (GLOBE NEWSWIRE) – Franchise Group, Inc. (NASDAQ: FRG) (“Franchise Group” or the “Company”) today announced the completion of the previously announced combination of its Liberty Tax business (“Liberty”) with NextPoint Acquisition Corp. (“NextPoint”), a diversified financial services platform. Franchise Group received total consideration of approximately $ 249 million, including approximately $ 182 million in cash and approximately $ 67 million in shares of NextPoint. The Company repaid approximately $ 182 million of its outstanding debt with the cash proceeds of the transaction.
Brian Kahn, President and CEO of Franchise Group, said, “I would like to thank all Liberty associates and franchisees for their positive impact on Franchise Group. We look forward to becoming a significant shareholder of NextPoint and remain optimistic that as an independent public company, NextPoint can accelerate its plan to scale a diverse financial services platform throughout the year. year. Franchise Group’s use of the cash proceeds from the transaction to repay debt is in line with our commitment to a prudent financial policy.
About the franchise group
Franchise Group owns and operates franchise and franchisable businesses that continually seeks to grow its brand portfolio while using its operating and capital allocation philosophy to generate strong cash flow for its shareholders. Franchise lines of business include Pet Supplies Plus, American Freight, The Vitamin Shoppe and Buddy’s Home Furnishings. On a combined basis, Franchise Group currently operates more than 1,800 locations primarily located in the United States which are either managed by the Company or operated under franchise agreements.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, without limitation, those which contain or are identified by words such as “outlook”, “guidance”, “” Believes “,” expects “,” potential “,” continues “,” may “,” will “,” should “,” plans “,” intends “,” plans “,” estimates ” “,” Anticipate “,” might “or the negative version of these or other comparable words. Forward-looking statements include, without limitation, projections, predictions, expectations or beliefs regarding future events or results and are not statements of historical fact, including the Company’s expectations regarding its financial condition. , the success of NextPoint and the resulting value creation for the Company, the Company’s strategic growth plans and the effects of the coronavirus pandemic (COVID-19) on economic conditions and the industry in general, the success of the Company’s fundraising efforts and the Company’s financial condition and results of operations. These forward-looking statements are based on various assumptions at the time they are made and are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from any future results, performances or achievements expressed or implied by these forward-looking statements. Forward-looking statements are often accompanied by words that express projected future events or results such as “expect”, “believe”, “estimate”, “plan”, “plan”, “anticipate”, “intend” “,” “” May “,” see “,” opportunity “,” potential “or words of similar meaning or other statements concerning the opinions or judgment of the Company or its management on future events. Although the Company believes that its expectations regarding forward-looking statements are based on reasonable assumptions within the limits of its present knowledge of its business and operations, there can be no assurance that the actual results, performance or achievements of the Company will not be. differ materially from the projected future results, performance or achievements expressed or implied by such forward-looking statements. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on various factors, many of which are beyond the control of the Company. We refer you to the “Risk Factors” and “Management’s Discussion and Analysis of the Financial Position and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended December 26, 2020, and Comparable sections of the Quarterly Reports on Form 10-Q and other documents filed with the SEC and available on the SEC’s website at www.sec.gov. All forward-looking statements contained in this press release are expressly qualified by the cautionary statements contained or referred to herein. Actual results or anticipated developments may not be realized or, even if they are substantially realized, they may not have the consequences or expected effects on the Company or its activities or operations. Readers are cautioned not to rely on any forward-looking statements contained in this press release. Forward-looking statements speak only as of the date on which they are made and the Company assumes no obligation to update, revise or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.
Franchise Group Investor Relations Contact:
Andrew F. Kaminsky
Executive Vice President and Administrative Director
Franchise Group, Inc.