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Highlights
- Blackstone Products is going public in a SPAC merger with Ackrell SPAC Partners I Co. (NASDAQ:ACKIU).
- The company’s pro-forma enterprise value is approximately US$900 million.
- Blackstone plans to get listed on NASDAQ under the ticker symbol BLKS.
Griddle-maker Blackstone Products is going public by merging with a special purpose acquisition company (SPAC) at a pro-forma valuation of US$900 million.
The Logan, Utah-based company plans to get listed on NASDAQ under the ticker symbol BLKS.
Blackstone SPAC Deal
Blackstone Products, founded in 2008, announced on Thursday that it sealed a merge deal with Ackrell SPAC Partners I Co. (NASDAQ:ACKIU), a special purpose acquisition company (SPAC).
Blackstone expects to raise US$281 million in gross proceeds, including US$142 million in private investment in public equity (PIPE). Of the total PIPE proceeds, US$31 million will be in equity and US$111 million in convertible notes due in 2027.
The company plans to use the funds in its business expansion. The transaction is expected to be completed in the second quarter of 2022.
Ackrell investors have the option to withdraw their money before the completion of the merger. But they may find it better to stay invested since they would forfeit the warrants upon withdrawal. The warrants give them the right to buy more shares at a set price in the future.
What does Blackstone Products Do?
The Utah-based company makes outdoor griddles and accessories. The company aims to make outdoor cooking equipment beyond just barbeque appliances.
CEO Roger Dahle said that social media platforms like TikTok and Instagram have helped drive awareness of Blackstone griddles and other company products.
“It’s a very powerful driver—that emotion. Our customers are very loyal,” he added.
Financials and stock performance
Blackstone expects 33% sales growth YoY to US$600 million in 2022 from this year’s US$450 million.
The Ackrell stock rose 3.86% to US$10.75 in premarket after the deal.
Bottomline
This year saw more than 600 SPACs in the US, raising around US$160 billion, according to data firm Dealogic, reported by WSJ. During the pandemic, many other outdoor cooking brands went public, including grill-maker Weber Inc., Traeger Inc., and Solo Brand Inc.
