Sentinel Capital Partners sells Pet Supplies Plus

Leading Independent Pet Franchisor Experiences Significant Growth

NEW YORK, March 10, 2021 – Sentinel Capital Partners, a private equity firm that invests in promising lower midmarket companies, today announced the sale of Pet Supplies Plus ("PSP"), the third largest pet specialty chain in the U.S., to Franchise Group, Inc. (NASDAQ:FRG). 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. At the time of Sentinel's acquisition, PSP's system comprised 448 stores serving 33 states, split evenly between franchised and company-owned locations. After two years of significant growth and strategic transformation, PSP's footprint includes 537 stores covering 36 states, with approximately 58% of the stores now owned by franchisees.

"We are extremely pleased with PSP's significant expansion and successful integration of new franchisees into its system," said Marc Buan, a Sentinel Principal. "PSP is the #1 pet franchisor in the U.S. in an attractive, growing market driven by loyal consumers passionate about pet ownership. We were honored to work with PSP's highly committed and talented management team who have superbly positioned the company for continued growth."

"It was a pleasure to partner with Sentinel as we significantly grew the franchisee base through geographic in-fill and expansion into white space," said Chris Rowland, CEO of Pet Supplies Plus. "Sentinel's deep experience investing in franchise-related businesses was a great asset to us throughout this entire period."

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.