Military veteran-focused Black Rifle Coffee to go public via $1.7 bln SPAC deal – Reuters

Welcome to Reuters Legal News beta. Please enjoy and provide us with your feedback as we continue to improve the Reuters Legal News experience.
REUTERS/Larry Downing
The company and law firm names shown above are generated automatically based on the text of the article. We are improving this feature as we continue to test and develop in beta. We welcome feedback, which you can provide using the feedback tab on the right of the page.
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.
Shares of the SPAC jumped nearly 58% in early trade to a record high of $15.5 on the news.
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 deal, 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.
Subscribe for our daily curated newsletter to receive the latest Reuters legal news and headlines delivered to your inbox.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Information, analytics and exclusive news on financial markets – delivered in an intuitive desktop and mobile interface.
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved