B. Riley Financial Inc., a provider of business advisory and financial services, has purchased Targus, a company that designs, manufactures and sells consumer and enterprise productivity products, in a transaction valued at approximately $250 million on an enterprise value basis.
The Targus product line includes laptop and tablet cases, backpacks, universal docking stations and computer accessories. Financing for the transaction included approximately $85.5 million of bank financing and $114 million of seller financing and B. Riley bonds. This deal looks to offer growth to B. Riley’s dividend capacity and aims to complement B. Riley’s existing brand and communication company investments.
“This addition aligns with our strategy of utilizing excess capital from our episodic businesses to invest in companies with strong and steady free cash flow,” comments Bryant Riley, chairman and co-chief executive officer of B. Riley Financial. “The growth in our portfolio of steady cash-generative businesses, combined with profits generated from our loan book, has enabled us to allocate a significant portion of our capital to our shareholders in the form of dividends and repurchases.”
Sullivan & Cromwell LLP acted as legal advisor to B. Riley. O’Melveny & Meyers LLP acted as legal advisor to Targus.