LOS ANGELES, Oct. 30, 2019 /PRNewswire/ -- B. Riley
Financial, Inc. (NASDAQ:RILY) ("B. Riley" or the "Company"), a
diversified financial services company which operates through
several wholly-owned subsidiaries, today announced it has
established a brand investment portfolio which aligns with the
Company's strategy of pursuing strong free cash flow investment
opportunities to generate accretive recurring revenue for the B.
Riley platform. Through an investment of $116.5 million, the Company holds majority
ownership of the assets and intellectual property related to
licenses of six brands: Catherine
Malandrino, English Laundry, Joan
Vass, Kensie Girl, Limited Too and Nanette Lepore. The
Company has also agreed to invest in Bluestar Alliance's recently
announced acquisition of the Hurley brand, which is expected to
close in December.
"The shifting retail landscape has created more opportunities to
acquire licenses for established and up-and-coming brands at an
attractive valuation. Our significant investment in these seven
brands provides balance to our more volatile businesses, while also
supporting our dividend strategy," said Bryant Riley, Chairman and Co-Chief Executive
Officer of B. Riley Financial. "Through the formation of this brand
investment portfolio, combined with our ongoing partnership with
Bluestar Alliance and our existing ownership stake in bebe stores,
we believe we have credibly established ourselves as a significant
financing source and investment partner to brand management
companies."
The Company intends to grow licensing revenue from the brand
holdings in partnership with Bluestar Alliance by leveraging its
extensive relationships and strategic partnerships in the retail
sector. The Company intends to pursue future acquisitions of
consumer brands, intellectual property, trademarks and licenses,
and participate in select transactions as an equity owner.
For more information, visit ir.brileyfin.com.
About B. Riley Financial
B. Riley Financial provides
collaborative financial services tailored to fit the capital
raising and business advisory needs of public and private companies
and high-net-worth individuals. B. Riley operates through several
wholly-owned subsidiaries which offer complementary end-to-end
capabilities spanning investment banking and institutional
brokerage, private wealth and investment management, corporate
advisory, restructuring, due diligence, forensic accounting and
litigation support, appraisal and valuation, and auction and
liquidation services. Certain registered affiliates of B. Riley
originate and underwrite senior secured loans for asset-rich
companies. The Company also makes proprietary investments in
companies and assets with attractive return profiles.
Forward-Looking Statements
Statements in this press
release that are not descriptions of historical facts are
forward-looking statements that are based on management's current
expectations and assumptions and are subject to risks and
uncertainties. If such risks or uncertainties materialize or such
assumptions prove incorrect, our business, operating results,
financial condition and stock price could be materially negatively
affected. You should not place undue reliance on such
forward-looking statements, which are based on the information
currently available to us and speak only as of the date of this
press release. Because these forward-looking statements involve
known and unknown risks and uncertainties, there are important
factors that could cause actual results, events or developments to
differ materially from those expressed or implied by these
forward-looking statements. Factors that could cause actual results
to differ include (without limitation) the possibility that the
proposed Hurley transaction will not be consummated at the expected
time, on the expected terms, or at all; and our expectations
regarding the Company's business strategies and financial
performance; and those risks described from time to time in B.
Riley Financial's periodic filings with the SEC, including, without
limitation, the risks described in B. Riley Financial's Annual
Report on Form 10-K for the year ended December 31, 2018 under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations." Additional information is
also set forth in our Quarterly Report on Form 10-Q for the quarter
ended June 30, 2019. These factors
should be considered carefully, and readers are cautioned not to
place undue reliance on such forward-looking statements. All
information is current as of the date this press release is issued,
and B. Riley Financial undertakes no duty to update this
information.
Contacts
Investors
|
Media
|
B. Riley
Financial
|
Jo Anne
McCusker
|
ir@brileyfin.com
|
jmccusker@brileyfin.com
|
(310)
966-1444
|
(646)
885-5425
|
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SOURCE B. Riley Financial