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Home / transaction / Berkshire Global Advisors acted as exclusive financial advisor to FBR & Co.
Berkshire Global Advisors acted as exclusive financial advisor to FBR & Co.
  • has been acquired by

    • Berkshire Global Advisors acted as exclusive financial advisor to FBR & Co.

  • Date: February 2017
  • Sector: Securities and Investment Banking
  • Sub-Sector: Investment Bank
  • Region: North America
  • Seller AUM: N/A

    • Seller Details
    Founded in 1989, FBR & Co. has a strong, well-established track record as a full-service investment bank with approximately 260 employees. FBR provides investment banking, M&A advisory, institutional brokerage, and research services with focused capital and financial expertise in consumer; energy & natural resources; financial institutions; healthcare; insurance; industrials; real estate; and technology, media & telecom industries.

    Buyer Details
    B. Riley Financial is a publicly traded, diversified financial services company addressing capital raising and financial advisory needs of public and private companies and high net worth individuals. Headquartered in Los Angeles, CA with offices in major financial markets throughout the United States, Australia and Europe, the firm consists of over 200 professionals whose cross-platform expertise is mobilized to provide a myriad of financial solutions.

    Transaction Summary
    B. Riley Financial, Inc., a diversified financial services company, has signed a stock for stock merger agreement to acquire FBR & Co., a leading investment banking and brokerage firm, in a transaction valued at $160.1 million ($20.28 per share) based on 17 February 2017 closing price of $17.55 for B. Riley Financial’s common shares and an anticipated payment of a special cash dividend concurrent with closing of $8.50 per share.B. Riley Financial and FBR combined will become a clear leader in small cap investment banking and brokerage in the U.S. with 600 names under research coverage. Upon closing, Richard Hendrix, FBR’s current Chairman and CEO, will assume the role of CEO of the combined investment banking and brokerage business, which will be a subsidiary of B. Riley Financial.

    FBR’s banking and brokerage businesses strategically align with B. Riley’s current operations with limited overlap of clients, coverage and capital raising activities. The transaction further diversifies the overall business of B. Riley Financial and adds FBR’s leading initial equity franchise to B. Riley Financial’s successful capital markets capabilities. In addition, the combination allows for expanded geographic distribution reach with significant operations on the East and West coasts.