B. Riley Cashes In $66 Million Gain With GlassRatner Sale, Refocuses On Core Business

B. Riley Financial, Inc. (NASDAQ:RILY) shares are trading higher on Friday following the announcement of a strategic divestiture.

The company sold its advisory divisions, GlassRatner Advisory & Capital Group, LLC and B. Riley Farber Advisory Inc., to funds managed by TorQuest Partners for $117.8 million.

This deal is expected to result in a second-quarter gain of approximately $66 million for B. Riley.

According to Benzinga Pro, B. Riley stock has lost over 82% in the past year.

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According to Bryant Riley, chairman and co-CEO of B. Riley, this transaction is part of a renewed commitment to focus on the company’s core business segments: its middle-market investment banking division, B. Riley Securities, and its wealth management platform.

The proceeds from the sale are intended to fuel growth initiatives and strengthen the company’s financial foundation, with a primary goal of maximizing shareholder value.

GlassRatner, acquired by B. Riley in 2018, specializes in restructuring, forensic accounting and litigation consulting.

Despite a record performance last year, B. Riley decided to part ways with the unit after close collaboration with GlassRatner CEO Ian Ratner. Ratner expressed enthusiasm for GlassRatner’s “new chapter” under TorQuest’s stewardship, highlighting TorQuest’s track record of scaling firms.

Justin Catalano, a partner at TorQuest, affirmed confidence in GlassRatner’s future, noting its established industry position and growth potential. This acquisition marks TorQuest’s third platform investment from its C$2.3 billion Fund VI.

B. Riley Financial Inc. is known for its comprehensive financial solutions, which include investment banking, asset management, brokerage services, and corporate restructuring.

The firm also engages in opportunistic investments and financing of asset-backed ventures through its affiliated entities.

RILY Price Action: B. Riley shares are trading higher by 2.68% to $3.07 at publication on Friday.

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