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Investing.com – SilverBox Engaged Merger Corp I (NASDAQ:SBEA), a special purpose acquisition company, soared more than 24% on the Nasdaq Tuesday on a merger deal with Black Rifle Coffee.
The coffee seller, owned by military veterans, has been valued at about $1.7 billion, according to a release by the companies.
Black Rifle is known for its pricier coffee and firearms-themed products such as its AK-47 Espresso Blend. It also sells branded apparel and produces digital content to promote its products to veterans and first responders. It has successfully embraced social causes to drive its sales at a time when consumers are increasingly looking for such brands.
Black Rifle plans to reorganize as a public-benefit corporation. The company projects revenue of more than $230 million in 2021 and $311 million in 2022.
SilverBox, promoted by SilverBox Capital and Engaged Capital, completed its $345 million initial public offering in March.
A special purpose acquisition company, commonly referred to as SPAC, is a blank-check company that uses proceeds from an IPO to take private firms public. It is usually set up by high profile people with relevant industry experience and that’s what gets it the initial valuation with the subsequent transaction bringing it the final value.
