B. Riley Financial announced it and its subsidiary bebe stores have completed a deal for their brand assets yielding approximately $236 million in cash proceeds to B. Riley.
At the closing of the deal, B. Riley transferred and contributed its interests in the assets and intellectual property related to the licenses of several brands, such as Hurley, Justice, Scotch & Soda, Catherine Malandrino, English Laundry, Joan Vass, Kensie, Limited Too and Nanette Lepore to a securitization vehicle, receiving about $189 million in net proceeds in connection with the financing transaction.
bebe had sold its interests in the assets and intellectual property related to the licenses of the bebe and Brookstone brands for approximately $47 million in net cash proceeds also at the closing.
B. Riley bought the portfolio of brands (excluding bebe and Brookstone) for approximately $222 million and received $179 million in distributions during its ownership. And the company plans on utilizing the proceeds from this transaction to pay down outstanding senior secured debt and deleverage its balance sheet.
Sullivan & Cromwell served as legal advisor to B. Riley.
KEY QUOTES:
“We appreciate the partnership we have had with the Bluestar Alliance team over the past several years. Joseph Gabbay and Ralph Gindi are incredible operators, and have done a tremendous job re-positioning these brands.”
“With the completion of this transaction and the expected sale of a majority stake in Great American Group in late November, we are moving from a period of asset monetization to a renewed focus on growth in our core financial services operating businesses. There remains a huge opportunity in the small- and mid-cap markets, and we believe B. Riley is uniquely positioned to meet this demand. We look forward to providing investors with an update on our plans on our next quarterly earnings call.”
– Bryant Riley, Chairman and Co-Chief Executive Officer of B. Riley Financial
