Westrock Coffee is eyeing a greater slice of the global coffee market as it prepares to list on the Nasdaq in a deal valuing the company at more than $1bn
Westrock Coffee's production facility in Conway, Akansas, US | Photo credit: Westrock Coffee
Westrock Coffee has announced it will become a public company via a merger with Special Purpose Acquisition Company (SPAC), Riverview Acquisition Corp.
The deal values Westrock at around $1.1bn and will enable the US coffee roaster and tea distributor to accelerate the build-out of the largest roasting to ready-to-drink facility in the US – a 524,000sq ft facility in Conway
“The announcement today to go public via this transaction with Riverview represents a truly important milestone in Westrock Coffee’s journey,” said Scott Ford, CEO and Co-Founder of Westrock Coffee.
“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 recognisable names in the world, while making a noticeable impact in the lives of our farmer partners, by empowering them economically to improve their lives and the lives of those in their communities,” Ford added.
As part of the transaction, Westrock Coffee will convert into a corporation, with all existing shareholders rolling 100% of their shares into the new company.
Westrock says it wants to achieve significant expansion in the Europe, Asia Pacific, and the Middle East.
It is targeting a greater share of a total addressable market it says is worth $318bn and anticipates it will generate revenues of around $960m and profits of approximately $75m in 2022.
The proposed public offering comes shortly after Westrock Coffee announced it would absorb, S&D Coffee & Tea, which it acquired
for $405m in February 2020, to trade as single entity.