B. Riley Serves as Exclusive Financial Advisor to SMG Industries in its Acquisition of Barnhart Transportation

LOS ANGELES, July 11, 2023 - B. Riley Securities, Inc. ("B. Riley"), a leading middle market investment bank and subsidiary of B. Riley Financial, Inc. (Nasdaq: RILY), is pleased to have served as the exclusive financial advisor to SMG Industries, Inc. in connection with its acquisition of Barnhart Transportation, an established logistics and transportation solution provider based in Pennsylvania.

SMG Industries Inc. ("SMGI") is a growth-oriented transportation services company focused on the domestic infrastructure logistics market. Learn more about SMGI here.

The acquired Barnhart business consists of Barnhart Transportation, LLC, Barnhart Fleet Maintenance, LLC, Lake Shore Logistics, LLC, Lake Shore Global Solutions, LLC, Legend Equipment Leasing, LLC and Route 20 Tank Wash, LLC, which specializes in a wide range of transportation services, including full truck load, dry bulk, liquids, intermodal, LTL, heavy haul, drayage, transload, and an "asset lite" brokerage business. The consummation of this acquisition significantly contributes to both companies expansion efforts and creates valuable cross-selling opportunities.

Transaction Details:

  • Barnhart Purchase: The acquisition cost amounts to $53.25 million, with $26.0 million paid in cash at closing. As part of the transaction, the principal owners of Barnhart received $19.25 million of the purchase price in the form of SMGI common stock, received $5.0 million of SMGI preferred stock and received a $3.0 million promissory note from SMGI.
  • Financing Structure: The transaction was financed through a $25.0 million revolving credit facility from a national lender, with $16.4 million available and $10.9 million funded at closing, leaving $5.5 million of additional liquidity available on the revolving credit facility after closing. In addition, a $31.7 million senior secured term loan facility with a term loan lender was utilized to fund the purchase price. The proceeds from these two new senior secured lenders were used to finance the acquisition, refinance a portion of SMGI's existing debt that didn't convert into SMGI common stock at closing, and to cover associated transaction and professional fees and expenses.

To read more about this transaction click here.

B. Riley's deal team was led by Jon Merriman and Ryan Bernath and included Erik Bullock and Ryan Knight.

About B. Riley Securities
B. Riley has served as a preeminent fixture in middle market brokerage and investment banking for over 25 years. We provide a full suite of investment banking and capital markets services to companies, financial sponsors, and institutional investors across all industry verticals. Investment banking services include initial, secondary and follow-on offerings, institutional private placements, merger and acquisition (M&A) advisory, SPACs, corporate restructuring and recapitalization. Widely recognized for our thematic proprietary equity research, clients benefit from B. Riley's extensive network, industry expertise, and proven execution capabilities of our end-to-end financial services platform. Please see disclosures about B. Riley Securities Research here. B. Riley Securities is a subsidiary of B. Riley Financial (Nasdaq: RILY). For more information, visit www.brileysecurities.com.