B. Riley Sells Majority Stake in Great American to Oaktree for $203M

B. Riley has agreed to sell a majority stake in its appraisal and valuation business unit, Great American Group, to alternative investment manager Oaktree in a deal that values Great American at nearly $400M and will provide B. Riley with $203M in cash.

In an October 14 press release, B. Riley said it will retain a 47% interest in Great American, while Oaktree will pay $203M in cash for a 53% stake. The transaction values Great American at approximately $386M and is expected to close in the fourth quarter.

Moelis & Company LLC served as financial advisor to B. Riley, and Sullivan & Cromwell LLP served as legal advisor. Wachtell, Lipton, Rosen & Katz served as legal advisor to Oaktree.

The announcement of the deal comes at a time when B. Riley is seeking to raise cash to help service an estimated $2B in debt and cover write-offs. It follows reports in late September that Stifel Financial has been in talks with B. Riley to purchase its wealth management unit for over $100M.

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