Franchise Group Inc. FRG, parent of franchised businesses including Pet Supplies Plus, Wag N’ Wash, American Freight and The Vitamin Shoppe among others, said Wednesday it has agreed to be acquired by a consortium led by its own senior management, in a deal valued at about $2.6 billion including debt. Under the terms of the deal, Franchise Group shareholders will receive $30 in cash for each share owned, equal to a premium of 31.9% over the stock price on March 17, the last trading day before the company said it had received an unsolicited bid. The company’s independent directors have approved the deal based on the recommendation of a special committee . The deal is expected to close in the second half. although the agreement includes a 30-day “go shop” period for the company to seek alternative offers. Once the deal is completed, the Delaware, Ohio-based company will operate as a private enterprise and its stock will no longer trade on Nasdaq. The stock was halted premarket for the news.
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