LOS ANGELES and ANAHEIM, Calif., Oct. 19, 2022 /PRNewswire/ -- B. Riley Financial, Inc. (NASDAQ: RILY) ("B. Riley") and Targus Cayman HoldCo Limited ("Targus") today announced that B. Riley Principal Investments, LLC has acquired Targus, a multinational company that designs, manufactures, and sells consumer and enterprise productivity products. The Targus® product line includes laptop and tablet cases, backpacks, universal docking stations, and computer accessories.
B. Riley has acquired Targus in a transaction valued at
approximately $250 million on an enterprise
value basis, which represents a multiple of approximately 5.2x Adjusted EBITDA
for the trailing twelve-month period ending June 2022. Targus
generated revenues of approximately $415 million for
the same trailing twelve-month period. Financing for the transaction included
approximately $85.5 million of bank financing,
and $114 million of seller financing and B. Riley bonds.
In connection with the acquisition, Targus CEO Mikel Williams has stepped down from B. Riley
Financial's board of directors and will continue to lead Targus as a portfolio
company of B. Riley Principal Investments.
"We are grateful to Mikel for his contributions as a Board
member and are pleased to continue working with him at Targus," said Bryant Riley, Chairman and Co-Chief Executive Officer of B.
Riley Financial. "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. 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."
With a strong market position and attractive operating model,
the Targus acquisition offers accretive growth to B. Riley's dividend capacity
and complements B. Riley's existing brand and communication company
investments.
Mikel Williams, CEO of Targus, added: "Since 1983, Targus has been a
market leader focused on delivering quality design and innovative functionality
to meet the needs of our large global consumer base. I am excited about the
opportunities and connections that B. Riley can provide to Targus as we
continue to serve our customers and accelerate the expansion of our business
globally."
Sullivan & Cromwell LLP acted as legal advisor to B. Riley.
O'Melveny & Meyers LLP acted as legal advisor to Targus.
About Targus
For more than 35 years, Targus has been revolutionizing mobile
computing accessories for large enterprises and consumers, alike — connecting
people and technology in meaningful ways. From laptop bags to tablet cases, to
peripherals and universal docking stations, we persistently conceive, design,
and produce innovative, productivity-boosting solutions that make the complex,
simple; and seamlessly integrate into the lifestyles of mobile professionals
wherever they work - at home, in the office, or wherever they go. We cross
categories, regions, industries, and lifestyles with a breadth and depth of
products that provide you with the solutions you need to live, dream, and do.
Headquartered in Anaheim, California, Targus has global
operations in more than 24 offices and distribution in more than 100 countries.
Learn more about us at targus.com, like or
follow us on Facebook, and LinkedIn.
About B. Riley Financial
B. Riley Financial is a diversified financial services platform
that delivers tailored solutions to meet the strategic, operational, and
capital needs of its clients and partners. B. Riley leverages cross-platform
expertise to provide clients with full service, collaborative solutions at
every stage of the business life cycle. Through its affiliated subsidiaries, B.
Riley provides end-to-end, collaborative financial services across investment
banking, institutional brokerage, private wealth and investment management,
financial consulting, corporate restructuring, operations management, risk and
compliance, due diligence, forensic accounting, litigation support, appraisal
and valuation, auction, and liquidation services. B. Riley opportunistically
invests to benefit its shareholders, and certain registered affiliates
originate and underwrite senior secured loans for asset-rich companies. B.
Riley refers to B. Riley Financial, Inc. and/or one or more of its subsidiaries
or affiliates. For more information, please visit www.brileyfin.com.
Contacts
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Investors |
Media |
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Mike Frank |
Jo Anne McCusker |
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(212) 409-2424 |
(646) 885-5425 |
SOURCE B. Riley Financial