Bebe Stores acquires 47 franchise locations from Franchise Group

Bebe Stores Inc, a global specialty licensor of women’s apparel and accessories, has announced it has acquired 47 Buddy’s Home Furnishings rent-to-own franchises from Franchise Group for 35 million dollars.

Bebe said the deal also grants it 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,” Bebe CEO Manny Mashouf said 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.”