Westrock Coffee Looks to Emulate Antecedents’ Public Offering Success With $1.1B SPAC Merger

Westrock Coffee Eyes $1.1B SPAC Merger

After multiple coffee companies saw success hitting the public market in recent months, Westrock Coffee is joining the fray.

The North Little Rock, Arkansas-based brand, which sells coffee, tea and other items to consumers, restaurants and consumer-packaged goods (CPG) brands, announced Monday (April 4) that it is going public through a $1.086 billion deal with special purpose acquisition company (SPAC) Riverview Acquisition Corp.

“The intense customer, commercial and mission focus of the Westrock team has built a terrific business over the last 13 years, and now the company is poised for a very promising future,” Riverview CEO R. Brad Martin said in a statement. “The Westrock management team will be the largest equity owners in our company, and my fellow shareholders in Riverview Acquisition Corp. and my partners in the PIPE investment are delighted to become part of the Westrock family.”

The company, which aims to standout from competitors by focusing on sustainable sourcing, expects $960 million revenue in 2022 and expects adjusted EBITDA growth of around 60% during the year to $75 million. The deal is expected to close in the third quarter.

In early March, the company announced that it was rebranding itself to consolidate its eponymous brand and its S&D Coffee & Tea subsidiary into one brand bearing the Westrock name.

“Our scaled platform and comprehensive portfolio of beverage solutions has allowed us to deliver high-quality coffee, tea and extracts products to the largest and most recognizable names in the world, while making a noticeable impact in the lives of our farmer partners,” Westrock Coffee Co-Founder and CEO Scott Ford said in a statement. “…This transaction, in partnership with Brad and the incredible team at Riverview Acquisition Corp., will catapult our efforts globally and open a pathway for public investors to participate in our important work.”

The news comes after 2021 saw multiple coffee companies hit the public market. Dutch Bros., a Grant Pass, Oregon-based drive-thru coffee shop chain with over 500 locations across 13 states, went public via initial public offering (IPO) in September. The IPO was generally considered a great success, with the chain’s stock prices rising almost 60% on the first day of trading and an additional 30% on its second.

Read more: Coffee Companies Perk up at Opportunity to Break Big on Public Market Following Dutch Bros.’ IPO Success

Seven weeks later, Black Rifle Coffee Company (BRCC), a coffee company focused on military veterans, announced its plans to go public via SPAC in a in a roughly $1.7 billion deal that closed months later, and the company’s stock has been on the rise since then.

See more: Black Rifle Coffee Aims to Go Public in $1.7B SPAC Merger

“We carefully selected BRCC after identifying and evaluating roughly 200 quality merger candidates because of its strong foundation for sustainable growth, its loyal customer base and its management team’s relentless focus on execution,” Joe Reece, executive chairman of the SPAC, SilverBox Engaged Merger Corp. I, said in a statement at the time. “We look forward to continuing our partnership as long-term owners and supporters of the company’s mission.”