Alta Equipment & B. Riley Announce Merger

B. Riley Principal Merger, a special purpose acquisition company sponsored by an affiliate of B. Riley Financial and Alta Equipment Holdings a provider of premium industrial and construction equipment and related services, have entered into a merger agreement for a business combination transaction to create a publicly-traded equipment dealership platform. The anticipated pro forma enterprise value is approximately $550 million.

In connection with the closing of the business combination, BRPM intends to change its name to Alta Equipment Group.

Following the consummation of the business combination and the closing of the Potential Acquisitions, Alta Equipment will operate in 43 locations across Michigan, Illinois, New England, New York and Florida. The business combination is expected to accelerate Alta’s acquisition strategy, including its geographical market expansion plans.

The Alta Equipment executive management team will continue to be led by Chief Executive Officer Ryan Greenawalt. The board of directors is expected to include Greenawalt, who will serve as chairman, and Dan Shribman, chief investment officer of B. Riley Financial and the chief financial officer of BRPM.

Ryan Greenawalt, chief executive officer of Alta, said, “The business combination with BRPM is an important next step in our growth strategy as we look to leverage our strong operating platform by expanding our dealer network in a fragmented market and driving profitable growth and cash flow. This transaction is a great fit for Alta, providing efficient access to the public markets in partnership with a savvy investment firm with a terrific track record of supporting growth companies and positioning them to build shareholder value. We look forward to partnering with Bryant Riley, Chairman and CEO of B. Riley Financial, Dan Shribman and the B. Riley Financial team and to becoming a publicly-listed company.”

Dan Shribman, chief investment officer of B. Riley Financial and the Chief Financial Officer of BRPM, said, “We are thrilled to be able to partner with Ryan and his team. Alta exhibits a rare combination of value, growth and tremendous leadership. Ryan’s stewardship over the last decade speaks for itself. The pro forma business is anchored off an extremely high-quality parts- and service-led cash flow stream that we believe public markets will come to appreciate. Our growth lever is a robust acquisition pipeline, which we believe we are uniquely positioned to execute as the only publicly-listed industrial and construction dealership group in the country.”

Bryant Riley, Chairman and CEO of B. Riley Financial, said, “Alta is the exact type of company we envisioned bringing to market when we raised BRPM. This is a high-quality growth business with a proven management team that we believe deserves and will benefit from public currency. We have already seen a strong reception from a diverse group of long-term oriented shareholders, and we are excited to serve as a strategic partner to Alta in support of its future growth.”

Alta Equipment is anticipated to have pro forma revenue of $900 million for the year ended December 31, 2019, after taking into account the effect of the acquisition of two dealers by Alta contingent on the closing of the business combination which are currently under non-binding letter of intent and pending negotiation of definitive agreements.

Founded in 1984, Alta owns and operates as one of the largest integrated equipment dealership platforms in the U.S., providing diversified product and service offerings across the industrial and heavy construction equipment markets for an array of manufacturers including Hyster-Yale Materials Handling, Inc., AB Volvo and JCB Co., among more than 30 others.

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