B. Riley Financial unit buys receivables portfolio from W.S. Badcock

A B. Riley Financial Inc. subsidiary has acquired a portfolio of performing credit receivables from home furnishings company W.S. Badcock Corp., a unit of Franchise Group Inc.

The B. Riley entity purchased the portfolio for an aggregate purchase price of about $400 million. B. Riley intends to buy additional receivables, subject to certain limitations and restrictions.

W.S. Badcock will continue to service and administer the purchased receivables, which totaled about $535 million as of Dec. 15.

The purchase is expected to be accretive to B. Riley's EBITDA and to provide additional cash flow to the company throughout the portfolio's lifecycle, according to a news release.

In connection with the transaction, B. Riley, which had over $5 billion in assets as of Sept. 30, established a new receivables business to provide debt monetization solutions and portfolio acquisition services for its clients.

Several B. Riley affiliates provided financial advisory services for the transaction. Choate Hall & Stewart LLP served as legal counsel and Hudson Cook LLP served as regulatory counsel to B. Riley. Willkie Farr & Gallagher LLP was legal counsel to Franchise Group.