Redwire To Go Public Through Merger With A SPAC
Space technology firm Redwire is slated to go public through a merger with a special purpose acquisition company (SPAC). The company plans to merge with Genesis Park Acquisition Corp., which held its initial public offering in November. [soros] Q4 2020 hedge fund letters, conferences and more Details On The Redwire Offering After the merger, Redwire […]
Space technology firm Redwire is slated to go public through a merger with a special purpose acquisition company (SPAC). The company plans to merge with Genesis Park Acquisition Corp., which held its initial public offering in November.
Details On The Redwire Offering
After the merger, Redwire should have $170 million in capital, and the deal values the firm at $615 million. Redwire and Genesis Park expect the transaction to be completed by the end of the second quarter. Redwire will then be traded on the New York Stock Exchange.
Private-equity firm AE Industrial Partners formed the company last year from the combination of Deep Space Systems and Adcole Space. Redwire is a serial acquirer, having bought Made in Space, Roccor, LoadPath, Oakman Aerospace and Deployable Space Systems.
Through all the acquisitions, the company has become a major supplier to the space industry, helping drive its growth. Chairman and CEO Peter Cannito told investors on a call today that many people think the "next decade of space is a new gold rush." He added that Redwire is "providing the highly specialized picks and shovels required for the space industry."
Space News reports that the SPAC merger is unique because Redwire has both profits and revenues. Most SPAC deals involve unprofitable companies. The firm posted $119 million in sales last year and adjusted EBITDA of $13 million. Company management expects to see $163 million in revenue and $20 million in adjusted EBITDA this year. By 2025, the company expects its revenue to reach $1.4 billion and its adjusted EBITDA to rise to $250 million.
Genesis Park President and Chief Financial Officer Jonathan Baliff said on the call today that Redwire is unique among SPAC firms because of its combination of profitability and breakout organic growth. Redwire President and Chief Operating Officer Andrew Rush told investors that the company had won over $70 million worth of new business over the last few months.
One of the contracts the company won was an order for a solar sale for a NASA heliophysics mission. Other projects include a robotic arm for Momentus' Vigoride tug and avionics to be used for Firefly Aerospace's lunar lander.
The company said in a presentation to investors that the cash it raises through the SPAC transaction will be used as "dry powder for strategic investments and continued pursuit of Redwire's proprietary M&A pipeline." The firm is just the latest of a long line of space companies to go public through a SPAC merger. Other space companies planning to merge with SPACs include Momentus, AST SpaceMobile, Black Sky and Spire, although none of the transactions have closed yet.