SPAC Velocity Acquisition gains after confirming deal to take BBQGuys public
Jul. 20, 2021 8:34 AM ETVelocity Acquisition Corp. (VELO)VELO, COOK, WEBRBy: Joshua Fineman, SA News Editor
- SPAC Velocity Acquisition (NASDAQ:VELO) rose almost 1.5% after confirming a deal to take online retailer of grills and outdoor kitchens BBQGuys public.
- BBQGuys, which counts NFL greats Eli Manning, Peyton Manning and their father Archie Manning as minority investors, will have a pro forma equity value of $963M and enterprise value of $893M. The company's current holders including Brand Velocity Partners and management are rolling 100% of their equity into the company and will continue to own at least 71% of the shares on a pro forma basis.
- Estimated cash proceeds to the company for the transaction are expected to consist of Velocity's $230M of cash, according to a statement. Velocity sponsors are expected to own 5% of the combined company and public holders will own 24%.
- The deal is expected to be completed in Q4. News of the transaction was reported last week by Bloomberg.
- The BBQGuys SPAC deal follows a string of IPO news in the barbeque space after Weber filed for an IPO earlier this month and Traeger filed to go public last week.
- Velocity Acquisition, led by CEO Adrian Covey, raised $230M in its IPO in February.