What was the net cash paid in the 1 800 Packouts transaction?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Y's operations as if CMY had been combined as of January 1, 2023.
i. Five Star Bath, Inc.
On December 13, 2024, the Company entered into a securities purchase agreement to acquire 100% of the shares of a franchisee, Five Star Bath, Inc. The securities purchase agreement included payment of rollover ownership interest of
$3,000,000 wherein the former owner was granted an ownership interest in the Company, and a cash payment of $1,100,000.
The purchase consideration has been allocated based on the assessment of the fai
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the net cash paid in the acquisition of 1-800-Packouts, LLC is detailed in Item 23. The table provides a breakdown of the total consideration, rollover equity, and cash acquired to arrive at the net cash paid.
The total consideration for the acquisition was $4,100,000. From this amount, $3,000,000 is attributed to rollover equity, which represents the former owner's granted ownership interest in the Company, and ($108,054) represents cash acquired. After accounting for these adjustments, the net cash paid by the Company for the acquisition of 1-800-Packouts, LLC was $991,946.
This information is relevant for prospective franchisees as it provides insight into the financial transactions and valuation considerations made by the company in acquiring 1-800-Packouts, LLC. Understanding these details can help franchisees assess the financial stability and strategic decisions of the franchisor. Additionally, it offers a glimpse into how the company manages acquisitions and integrates new entities into its business model.