LOS ANGELES, Aug. 28, 2023 /PRNewswire/ — B. Riley Financial, Inc. (Nasdaq: RILY) (“B. Riley” or the “Company”), a diversified monetary companies platform, introduced it led the fairness financing to facilitate the $2.8 billion management-led acquisition of Franchise Group, Inc. (“FRG”) which was accomplished on August 21, 2023.
B. Riley invested $216.5 million of latest capital within the transaction. Other institutional, monetary and strategic traders invested roughly $280 million of extra fairness capital within the new FRG alongside vital rollover fairness contributions from FRG administration. As results of the finished transaction, the management-led consortium has acquired all of the excellent and issued frequent and most popular inventory of FRG.
Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial, commented: “We are happy that our dedicated fairness backstop performed a job within the capability to construction and efficiently shut this transaction. We are additionally happy to have the chance to speculate alongside FRG administration and different co-investors along with a choose group of establishments and strategic companions.”
“This is our second time taking a significant place in FRG. B. Riley was an investor in Liberty Tax which finally turned FRG in 2018. That preliminary funding generated a complete IRR of over 30% for our shareholders. Our capability to assist our purchasers as a strategic companion is a core technique of our business and one we consider serves as a key differentiator for our platform. We are additionally grateful for our relationship with our lenders which has supplied us extra flexibility to serve our purchasers and shareholders with roughly $300 million of money and near-term liquidity,” added Riley.
New Credit Facility
B. Riley entered into a brand new credit score settlement with sure of its present lenders, offering for a $600 million secured credit score facility, of which a portion of proceeds have been used to finance the Company’s fairness funding in FRG and retire its earlier $380 million credit score facility.
Brian Kahn, Chief Executive Officer of Franchise Group, added: “B. Riley has been instrumental in contributing to Franchise Group’s development relationship again to its predecessor, Liberty Tax. Over the final 5 years, B. Riley has persistently supported us with inventive capital options by means of the collection of value-creating acquisitions that generated vital complete returns for our public stockholders. We are thrilled to proceed our partnership with the B. Riley workforce, now as our largest minority shareholder.”
The FRG portfolio of businesses consists of Pet Supplies Plus, American Freight, The Vitamin Shoppe, Badcock Home Furniture & extra, Buddy’s Home Furnishings, Sylvan Learning and Wag N Wash. On a mixed foundation, FRG presently operates over 3,000 areas predominantly positioned within the U.S. which might be both operated by FRG or operated pursuant to franchising and supplier agreements.
Advisors
Sullivan & Cromwell LLP served as authorized counsel to B. Riley in reference to its funding in FRG and the credit score facility.
About B. Riley Financial
B. Riley Financial is a diversified monetary companies platform that delivers tailor-made options to satisfy the strategic, operational, and capital wants of its purchasers and companions. B. Riley leverages cross-platform experience to offer purchasers with full service, collaborative options at each stage of the business life cycle. Through its affiliated subsidiaries, B. Riley supplies end-to-end monetary companies throughout funding banking, institutional brokerage, non-public wealth and funding administration, monetary consulting, company restructuring, operations administration, threat and compliance, due diligence, forensic accounting, litigation assist, appraisal and valuation, public sale, and liquidation companies. B. Riley opportunistically invests to learn its shareholders, and sure associates originate and underwrite senior secured loans for asset-rich corporations. B. Riley refers to B. Riley Financial, Inc. and/or a number of of its subsidiaries or associates. For extra data, please go to www.brileyfin.com.
SOURCE B. Riley Financial
