Liberty Tax has signed a definitive purchase agreement to purchase Sears Hometown’s Outlet business and Buddy’s Home Furnishings stores, together called Outlet Segment.

As part of the transaction, the company will offer around $132.9m, which will be financed through a mix of new debt, Liberty Tax’s balance sheet cash and an equity contribution from a Vintage Capital Management affiliate.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to the company, the divestment of Sears Outlet business is in compliance with the terms of the merger agreement between Sears Hometown and integrated retailer Transform Holdco.

Transform Holdco signed a deal this June to acquire the outstanding shares of Sears Hometown that are not owned by ESL Investments and its affiliates.

“We are excited about the acquisition of Sears Outlet and its unique model that offers its customers in-store and online access to outlet-value products.”

ESL Investments and its affiliates own approximately 55.2% of the outstanding shares of Sears Hometown.

Liberty Tax board of directors chairman Andrew Laurence said: “We are excited about the acquisition of Sears Outlet and its unique model that offers its customers in-store and online access to outlet-value products across a broad assortment of merchandise categories, while serving as a valuable supply chain partner for its vendors.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“This is a continuation of Liberty Tax’s strategy of identifying and acquiring franchised or franchisable businesses, while also building scale at attractive acquisition valuations.

“It’s an exciting time for Liberty Tax and its shareholders as we begin to recognise the strength in our future-facing franchise business model.”

Liberty Tax has signed a debt commitment letter with Guggenheim Credit Services and clients managed by Guggenheim Investments.

It has also signed an equity commitment letter with a Vintage affiliate. Both agreements are dependent on satisfaction of customary conditions.

The boards of directors and the special committee of Sears Hometown, along with Liberty Tax board of directors have approved the transaction.

Both the acquisition by Liberty Tax and the merger between Sears Hometown and Transform are expected to complete this October.

Liberty Tax’s wholly-owned subsidiary Buddy’s Newco has purchased 41 Buddy’s Home Furnishings stores from franchisee A-Team Leasing.