In a business combination with Riverview Acquisition Corp., Arkansas-based Westrock Coffee Holdings LLC announced in April that it will go public, launching an initial public offering at $10 per share.
The transaction values the coffee, tea, and extracts company at about $1.1 billion and will deliver about $500 million in gross cash proceeds, with no redemptions by Riverview shareholders. Westrock said its existing shareholders will roll their shares into the combined company.
The new entity, headed by former Alltel Chief Executive Officer Scott Ford, will be named Westrock Coffee Company. Riverview is a year-old special-purpose acquisition company (SPAC) based in Memphis. The arrangement is expected to accelerate construction of the largest roasting-to-cup facility in the U.S., expand business into Europe, Asia Pacific, and the Middle East, and target strategic acquisitions.
Westrock is a purpose-driven company that serves major brands through sustainable sourcing and digitally traceable supply chain management.
“(The deal) represents a truly important milestone in Westrock Coffee’s journey,” Ford told Talk Business & Politics, which covers news in Arkansas. “We started Westrock Coffee when we saw the need for coffee farmers in Rwanda to earn a living wage and realized that a new business model for the industry could enable this outcome while being self-sustaining and unreliant on the vagaries of charity or consumer price premiums.”
The company’s goal is to deliver high-quality coffee, tea, and extracts to the largest and most recognizable names in the beverage industry and make a positive economic impact in the lives of partner farmers, Ford said.
“(Westrock is) a merger partner in an attractive business with tangible growth prospects in which we could invest, a solid market position with competitive strengths, and an experienced, public company-ready management team that has demonstrated a commitment to maximizing value while operating with the highest level of integrity,” Ford said.
The combined company will be headquartered in central Arkansas.