Military veteran-focused Black Rifle Coffee to go public via $1.7 bln SPAC deal (updated)

BRC

02/11/2021 11:55

(Adds more details on the deal)
    Nov 2 (Reuters) - Black Rifle Coffee Company (BRCC), a
coffee seller that focuses on military veterans, said on Tuesday
it will go public through a merger with a blank-check
acquisition firm in a deal that values the combined company at
about $1.7 billion.
    The deal with SilverBox Engaged Merger Corp I  SBEA.O  will
be financed by up to $345 million of cash held in the trust
account of the SPAC and commitments of about $300 million from
other investors. 
    The total capital available to Black Rifle at the close of
the deal will be up to $545 million, the companies said. 
    Utah-based Black Rifle, founded in 2014, sells apparel and
merchandise, apart from its flagship firearm-themed coffee roast
blends. 
    As part of the transaction, BRCC plans to reorganize as a
public benefit corporation, meaning that while the company will
remain a for-profit enterprise, it will continue to support
social good.
    BRCC and SBEA together are expected to donate more than
530,000 shares, valued at about $5.3 million, to the company's
charitable foundation.  
    BRCC said its consumer business, which includes both
subscription and non-subscription sales, saw a 92% jump in 2020
to $126 million. It also generates sales through wholesale
retail from grocery chains such as 7-Eleven, Sam's Club, and
Walmart, as well as company-operated and franchised retail
coffee shops. 
    The deal is expected to close during the first quarter of
2022, after which the combined company will be named Black Rifle
Coffee Inc. 

 (Reporting by Manya Saini and Niket Nishant in Bengaluru;
Editing by Shailesh Kuber and Shinjini Ganguli)
 ((Manya.Saini@thomsonreuters.com;))