The transaction will be funded by a 1.5 million primary share purchase by B Riley Financial at a price of $5.00 per share, a $22 million secured loan led by MILFAM, LLC, and available cash on hand, Bebe said in a statement.
“This is a transformational acquisition that will not only be materially accretive to Bebe’s cash flow over time, but also provides a platform for future growth through the development agreement,” said Bebe CEO Manny Mashouf. “The acquired Buddy’s stores have a strong and consistent record of free cash flow generation across multiple market cycles. This acquisition diversifies Bebe’s profit stream and better utilises existing net operating loss carry-forwards. Additionally, the expanded operational infrastructure being developed for this transaction can be leveraged to support additional acquisitions of high free cash flow entities in the future.”
Fibre2Fashion News Desk (RKS)