BBQGuys, an e-commerce platform for higher-end BBQ grills, grilling accessories and outdoor living products, today announced plans to merge with Velocity Acquisition at a pro forma equity value of approximately $963 million and an enterprise value of approximately $839 million.
BBQGuys backers include retired NFL stars Eli Manning and Peyton Manning.
If approved, the new company would list on the Nasdaq, trading under BBQG.
Estimated proceeds are expected to consist of Velocity’s $230 million of cash in trust (assuming no redemptions).
BBQGuys is owned by private equity firm Brand Velocity Partners (BVP).
Upon closing, assuming none of Velocity’s public stockholders elect to redeem shares, existing BBQGuys shareholders are expected to own 71% of the combined company, the Velocity sponsors are expected to own 5% and public stockholders are expected to own 24%. As part of BVP’s “Share the Gains” program, BVP’s principals are allocating 10% of their carried interest to the non-senior management employees of BBQGuys (subject to vesting).
The deal is epxected to close in the fourth quarter. Read more.