Sentinel Capital Partners has sold Pet Supplies Plus to Franchise Group Inc. The value of the deal is $700 million. Based in Livonia, Michigan, PSP is a pet specialty chain.
NEW YORK, March 10, 2021 /PRNewswire/ — Sentinel Capital Partners, a private equity firm that invests in promising lower midmarket companies, today closed its sale of Pet Supplies Plus (“PSP”), the third largest pet specialty chain in the U.S., to Franchise Group, Inc. The deal is valued at $700 million.
Founded in 1988 and headquartered in Livonia, Michigan, PSP is the leading franchisor and operator of pet-specialty stores that provide a customer-centric shopping experience in smaller stores that have a neighborhood feel. PSP blends the advantages of national scale with those of a friendly, local neighborhood pet store. Stores have a streamlined design, which makes them easy to navigate, and a wide assortment of proprietary and third-party branded pet foods, hard goods, and pet services. PSP also offers online shopping alternatives with same-day delivery from local stores or curbside pick-up. PSP is recognized by Entrepreneur magazine as the top full-service pet supplies franchise for its excellent performance, financial strength and stability, growth rate, and system size. Today, PSP’s footprint includes 562 stores covering 36 states, up from 448 stores serving 33 states at the time of Sentinel’s acquisition two years ago.
Sentinel has deep experience investing in franchise businesses, both as a franchisor and franchisee. Sentinel has acquired 14 franchise investments over the course of its history, including Border Foods, a franchisee in the Taco Bell system; Captain D’s, a franchisor and operator of more than 530 Captain D’s seafood restaurants; Checkers, a franchisor and operator of dual drive-thru quick service restaurants; Cottman Transmission Systems, a franchisor of automotive transmission centers; Falcon Holdings, the largest franchisee of Church’s Chicken restaurants; Fazoli’s, a regional franchisor and operator of Italian fast-casual restaurants; Interim Healthcare, the nation’s largest provider of home healthcare and supplemental healthcare staffing services; Huddle House, a franchisor of family dining restaurants; Massage Envy, the nation’s largest franchisor of therapeutic massage services; Newk’s Eatery, a franchisor and operator of fast-casual restaurants in the Southeast; Southern California Pizza Company, the exclusive Pizza Hut franchisee in the greater Los Angeles market; TGI Fridays, a global franchisor and operator of iconic American-style bar and grill restaurants; Tony Roma’s, a franchisor of casual dining restaurants; and Vital Care, a franchisor of home infusion services.
About Sentinel Capital Partners
Sentinel specializes in buying and building lower midmarket businesses in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, going-private transactions, and structured equity investments of established businesses with EBITDA of up to $80 million. Sentinel also invests in special situations, including balance sheet restructurings and operational turnarounds. For more information about Sentinel, visit www.sentinelpartners.com.