Conn’s, Inc. Completes Strategic Acquisition of W.S. Badcock LLC
Furniture World News Desk on
12/21/2023
Conn’s, Inc., the specialty home goods retailer, announced the acquisition of W.S. Badcock LLC, a prominent home furnishings company in the southeastern U.S. The all-stock transaction has made Badcock a wholly-owned subsidiary of Conn’s. This deal, approved by the Board of Directors, is expected to increase Conn’s presence across the southeastern U.S., adding over 550 stores in 15 states and approximately $1.85 billion in revenue.
Conn’s has also named Norman L. Miller as President and CEO. Miller, having served Conn’s in various capacities since 2015, brings significant experience to his new role. Badcock, with a history dating back to 1904, operates nearly 380 stores, offering customers a range of home goods and affordable payment plans. Mitchell Stiles, President and COO of Badcock, will continue to lead Badcock under the new structure.
Bob Martin, Conn’s lead independent director, stated, “This is a pivotal moment in Conn’s history, marking a strategic expansion that aligns with our growth priorities and extends our reach. We’re also pleased to confirm Norm Miller as President and CEO, whose leadership has previously contributed to periods of significant growth.”
The acquisition combines the strengths of both companies, from product categories to payment solutions, and is projected to increase annual revenue to $1.85 billion. Management anticipates over $50 million in cost synergies and enhanced financial stability, including $125 million of incremental liquidity.
Norm Miller, President and CEO of Conn’s, commented, “This acquisition is a transformational step for Conn’s, uniting two businesses that share a legacy of providing valuable home goods and payment solutions. We are confident that this will generate long-term value for shareholders.”
Mitchell Stiles added, “The synergies between Conn’s and Badcock will enhance our scale as one of the largest home goods retailers in the region. Our combined resources will benefit our stores and offer an improved customer experience.”
Transaction Details
The transaction involved Conn’s issuing 1,000,000 non-voting senior preferred shares, convertible into non-voting common stock, which equates to 49.99% of Conn’s outstanding common stock post-conversion. The issuance is contingent on shareholder approval. More than 40% of Conn’s shareholders have agreed to support the issuance and related actions. After the transaction, Conn’s expects to have around 49 million shares outstanding.
Financial advisors for Conn’s included Stephens Inc. and Deutsche Bank Securities Inc., with Sidley Austin LLP providing legal counsel. JP Morgan Securities LLC advised Franchise Group and W.S. Badcock LLC, with legal counsel from Willkie Farr & Gallagher LLP.
About Conn’s, Inc.
Conn's HomePlus (NASDAQ: CONN) is a specialty retailer of home goods, including furniture and mattresses, appliances and consumer electronics. With 175+ stores across 15 states and online at Conns.com, our approximately 4,000 employees strive to help all customers create a home they love through access to high-quality products, next-day delivery and personalized payment options, including our flexible, in-house credit program.
Additional information can be found by visiting our investor relations website at https://ir.conns.com and social channels (@connshomeplus on Twitter, Instagram, Facebook and LinkedIn).
About Badcock Home Furniture & more
W.S. Badcock LLC is a Southeastern home furnishings company headquartered in Mulberry, FL. Founded in 1904, its branded Badcock Home Furniture & more retail chain has grown to nearly 380 corporate and associate dealer stores across eight states. Badcock offers furniture, appliances, bedding, electronics, home office furnishing, accessories and seasonal items while providing payment plans just right for its customers. For more information, visit www.badcock.com.