Westrock Coffee Holdings today announced its plan to merge with Riverview Acquisition in a deal that values the company at approximately $1.086 billion.
If the SPAC’s shareholders approve, upon closing Westrock Coffee is expected to list on the Nasdaq under the ticker symbol WEST.
As part of the transaction, all of Westrock Coffee’s existing shareholders will roll 100% of their shares into the new Company and, assuming no redemptions from Riverview shareholders, will hold approximately 53% of the combined company on closing.
The transaction will deliver approximately $500 million in gross cash proceeds to the combined company, which also assumes no redemptions, including $250 million in common stock PIPE commitments at $10 per share, funded by $60 million from R. Brad Martin, NFC Investments and the other Riverview Acquisition founders, $25 million from Westrock Coffee founders, and $78 million each from HF Capital, the Haslam family investment office, and funds managed by Southeastern Asset Management.
In connection with the transactions, Westrock Coffee has secured a financing commitment from Wells Fargo for a $300 million credit facility, which will be used to re-finance the company’s existing debt and fund expansion plans.
Westrock Coffee is an integrated coffee, tea, flavors, extracts, and ingredients company in the U.S., providing coffee sourcing, supply chain management, product development, roasting, packaging, and distribution services to retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries around the world, according to a news release. With offices in 10 countries, the company sources coffee and tea from 35 origin countries. Read more.
