Illustration: Sarah Grillo/Axios
Westrock Coffee closed its SPAC deal with Riverview Acquisition, raising about $300 million in equity, and began trading on Nasdaq today, the company announced.
Why it matters: Armed to the teeth with cash, Westrock — which provides coffee and tea pods, brewing equipment and dispensers — could prove a formidable consolidator in the coffee and tea packaging space.
Deal details: In addition to the equity, Westrock secured a $175 million senior secured first lien term loan facility and a $175 million senior secured first lien revolving credit facility.
- Proceeds will pay existing debts as well as finance "organic and strategic growth initiatives," the company said.
- The company will trade on Nasdaq under WEST.
How it works: Westrock competes with Keurig and Nespresso, providing coffee and tea products for offices, convenience stores, grocery stores, universities, coffeehouses, and restaurants.
- The company exports its products through its subsidiary company.
The big picture: Though public markets are still choppy, demand for coffee products is strong. Nestle's Q2 results saw sales of coffee, including Nescafe and Starbucks brands, increase. In 2021, coffee was Nestle's largest contributor to organic growth.