Senior management team of Franchise Group, Inc. led by Brian Kahn, Chief Executive Officer completed the acquisition of remaining 64% stake in Franchise Group, Inc..
The non-binding proposal is subject to certain conditions to acquire all of the outstanding shares of Franchise. Transaction is subject to satisfaction or waiver of customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Act, approval by regulatory authorities and the approval of the shareholders of Franchise Group. The independent directors of Franchise Group?s Board of Directors have unanimously approved the proposed merger based upon the unanimous recommendation of a Special Committee of the Board of Directors. The Franchise Group approved all proposals related to the proposed acquisition. The proposed merger is anticipated to close in the second half of 2023. The proposed merger is anticipated to close in early in the week of August 20, 2023. As of August 28, 2023, B. Riley Financial led the equity financing to facilitate the acquisition, Riley invested $216.5 million of new capital. Other institutional, financial and strategic investors invested approximately $280 million of additional equity capital. Sullivan & Cromwell LLP served as legal counsel to B. Riley in connection with its investment in FRG and the credit facility.
Jefferies LLC is serving as financial advisor to the Special Committee and David A. Katz and Zachary S. Podolsky of Wachtell, Lipton, Rosen & Katz is serving as legal counsels to the Special Committee. David W. Ghegan of Troutman Pepper Hamilton Sanders LLP is serving as legal counsel to Franchise Group. Willkie Farr & Gallagher LLP is serving as legal counsel for Brian Kahn. Sullivan & Cromwell LLP is serving as legal counsel for B. Riley Financial, Inc. Christopher Nairn-Kim of Davis Polk & Wardwell LLP is serving as legal counsel for Irradiant Partners.
Senior management team of Franchise Group, Inc. led by Brian Kahn, Chief Executive Officer completed the acquisition of remaining 64% stake in Franchise Group, Inc. (NasdaqGM:FRG) on August 21, 2023.