Westrock Coffee to go public through $1.1 bln SPAC deal

Westrock Coffee

04/04/2022 13:37

April 4 (Reuters) - Westrock Coffee said on Monday it plans
to list in the United States by merging with a blank-check
company, valuing the combined entity at $1.09 billion including
debt.
    The Arkansas-based company plans to combine with Riverview
Acquisition Corp  RVAC.O . The special purpose acquisition
company (SPAC) raised $250 million in an initial public offering
in August last year to target consumer companies.
    A SPAC typically sells shares at $10 apiece, puts the cash
in a trust account and then searches for a company to buy,
taking it public through a merger by sidestepping a traditional
IPO. Its shareholders can choose to redeem their shares in
return for cash.
    The transaction includes $250 million in common stock
private placement in public equity (PIPE) commitments from NFC
Investments, Westrock and Riverview founders and funds managed
by Southeastern Asset Management, among others.
    Led by chief executive officer and co-founder Scott Ford,
Westrock supplies coffee and tea products to restaurants and
convenience stores. 
    Westrock's decision to go public comes at a time when a
number of companies scrapped their agreements with SPACs,
including telecom services firm Syniverse Technologies, 3D
printing firm Essentium Inc and travel technology platform
HotelPlanner.  urn:newsml:reuters.com:*:nL4N2UP3G5       
    Dealmaking in the SPAC market has been stifled by tightening
regulatory scrutiny and high investor redemptions.
    Stifel and Wells Fargo will serve as financial advisors to
Westrock. The deal is expected to close by the end of the third
quarter, after which the combined company will list on the
Nasdaq under the symbol "WEST". 
    

 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Mehnaz.Yasmin@thomsonreuters.com;))