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Black Rifle Coffee, Veteran-Focused Firm, Sets IPO Via $1.7B SPAC

Black Rifle Coffee, a military- and firearms-themed coffee producer and coffee-bar operator, is going public via a SPAC merger.
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Black Rifle Coffee, a military- and firearms-themed coffee producer and coffee-bar operator, is going public by merging with special purpose acquisition company SilverBox Engaged Merger Corp. (SBEA).

At last check SilverBox Engaged shares were trading up 23% at $12.07. They've traded on Tuesday as high as $15.07.

Black Rifle, Salt Lake City, was founded in 2014 by a Green Beret, Evan Hafer. 

“We founded Black Rifle Coffee to serve the highest quality coffee while supporting veterans and their families,” Hafer said in a statement, adding, “This combination will provide the capital BRCC needs to grow, serve great coffee, and move us closer to our goal of hiring 10,000 veterans as we open more stores nationwide."

It offers brands including AK-47 and Thin Blue Line (both medium roast).  

The new company, to be called BRC Inc., will have as much as $225 million cash on its balance sheet.

The enterprise value of the company would be about $1.7 billion, about four times expected revenue for 2023, the company said in a statement.

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For 2021, Black Rifle estimates revenue will grow 40% to $230 million at a gross margin of about 40%. Revenue in 2020 was $164 million, double the $82 million of the year earlier.

It donates part of its profits to support law enforcement, firefighters and First responders.

Black Rifle says it has more than 270,000 subscribers to its coffee club.

The company has seven stores, three operated by the company and four franchised. And it expects nine additional locations by the end of 2021. 

Black Rifle sells branded apparel and publishes a magazine called "Coffee or Die."

Investors have put $300 million into Black Rifle's equity, led by a $100 million commitment from Engaged Capital, the Newport Beach, Calif., investment firm.

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