Black Rifle Coffee Company plans to merge with SilverBox Engaged Merger I at a pro forma enterprise value of $1.7 billion. The valuation represents approximately four times projected 2023 revenues for the coffee company.
If approved, the combined company will be named BRC.
The proposed business combination will place up to $225 million in cash on Black Rifle Coffee’s balance sheet.
Both companies said in a news release that closing is a certainty. The transaction features $300 million in common equity commitments from a group of investors led by a $100 million commitment from Engaged Capital, that will satisfy the minimum cash condition. These commitments include a unique backstop feature in which the investors have provided flexibility in the total amount of capital to be funded, with the actual amount funded at closing between $200 million and $300 million.
BRCC and SilverBox also comitted to donating more than 530,000 shares, which would be valued at approximately $5.3 million at $10 per share, to the BRCC Fund– the company’s foundation that supports a mission of bettering the lives of military veterans.
Silverbox raised $300 million in a February IPO. Read more.
