- SilverBox said its merger with Black Rifle's parent company Authentic Brands LLC might close on February 9.
- SilverBox’s Executive Chairman Joe Reece said the company is thrilled to merge with Black Rifle and help accelerate its growth.
- The Utah-based company is popular for its expensive firearms-themed coffee products like AK-47 Espresso Blend.
The Authentic Brands LLC., which owns the Black Rifle Coffee Company, is all set to merge with blank-cheque firm SilverBox Engaged Merger Corp I (NASDAQ: SBEA) as it plans to go public.
SilverBox, sponsored by SilverBox Capital LLC and Engaged Capital LLC, said the merger plan, however, will be finalized after a shareholders meeting scheduled on Wednesday.
If approved, the deal is expected to close on February 9. SilverBox’s Executive Chairman Joe Reece said the company is thrilled to merge with Black Rifle and help accelerate its growth.
Black Rifle is a growing coffee company. It also sells branded apparel and creates digital content to promote products for veterans. The Utah-based company is popular for its expensive firearms-themed coffee products like AK-47 Espresso Blend.
Black Rifle was founded by former Green Beret Evan Hafer in 2014. Most of its revenue comes from online sales. But it also sells products through its physical stores and outlets like Walmart.
In November last year, Black Rifle had announced plans to go public through a SPAC merger that would value the company at around US$1.7 billion.
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SilverBox said the merger would be finalized after a special shareholders meeting scheduled on Wednesday. The shareholders were expected to approve the proposals in a vote.
The deal is expected to raise at least US$373 million. The proceeds would help fast-track the implementation of Black Rifle's digital-first, omnichannel strategy.
After the merger, Black Rifle is expected to trade on the New York Stock Exchange (NYSE) under the ticker symbol BRCC.
The SilverBox (SBEA) stock tumbled 3.79% to US$9.39 at 11:19 am ET on Wednesday.
Black Rifle founder Evan Hafer said the proceeds would help continue spending in the company’s omnichannel strategy and achieve its long-term goal of hiring 10,000 veterans.