Investment Banker Bryant R. Riley to Take B. Riley Financial Private

Investment banker Bryant R. Riley proposed to acquire the remaining 76.8% stake in his eponymous firm B. Riley Financial Inc. for approximately $160 million on August 15. Riley proposed to take the company private by acquiring the outstanding shares for a purchase price of $7 per share, which represented a 40% premium over the share price on the day of the announcement. He intends to finance the transaction with debt, which may include equity from third parties. Riley founded the company in 1997 and currently serves as chairman and co-chief executive.

“The company went public at $5 per share through a merger with Great American Group in 2014, and since that time, we have returned over $20 to shareholders, including through dividends and share buybacks. Over the last three years, our team has generated in excess of $1.1 billion of operating EBITDA,” said Riley in a letter to the company’s board of directors. “I believe that the company, its clients and customers, and employees would benefit greatly from private ownership,” he said.