Beverage brand Westrock Coffee Holdings entered into a definitive business combination agreement with special purpose acquisition company Riverview Acquisition Corp. (Nasdaq: RVAC). The transaction values the combined company at an enterprise value of US$1.09 billion, around 14.5 times the projected 2022 adjusted EBITDA.
The combined company is expected to receive US$500 million in gross proceeds through US$250 million in common stock PIPE commitments, US$60 million investment from Riverview Acquisition’s investors and founders, US$25 million investment from Westrock Coffee’s founders, and US$78 million each from investment firm HF Capital and funds managed by Southeastern Asset Management.
All of Westrock Coffee’s existing shareholders have committed to rolling 100% of their equity into the combined company, representing 53% of the resulting merger should no redemptions occur.
Following the closing of the transaction, the combined firm is set to trade on the Nasdaq big board under the symbol “WEST”.
The beverage brand claims to be “a leading integrated coffee, tea, flavors, extracts, and ingredients solutions provider in the US.” It has offices in 10 countries and sources raw materials from 35 countries.
The black check firm, on the other hand, completed its US$250 million IPO in August 2021. According to its prospectus, it intended to focus its search for target firms on consumer-focused enterprises, including e-commerce, the energy services and renewables sector, and the insurance and financial services sector.
Riverview Acquisition last traded at US$9.88 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.