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WASHINGTON — Redwire, a agency that has acquired a number of house expertise corporations within the final yr, introduced March 25 that it’ll go public by merging with a special-purpose acquisition company (SPAC).
Redwire mentioned it’ll merge with Genesis Park Acquisition Corp., a SPAC that went public in November 2020. The merger will present Redwire with $170 million in capital, valuing the corporate at $615 million. The businesses count on the deal to shut by the top of the second quarter of this yr, at which level Redwire might be publicly traded on the New York Inventory Alternate.
AE Industrial Companions, a personal fairness agency, created Redwire in June 2020 by combining two house expertise corporations, Adcole Area and Deep Area Methods, it had acquired. Redwire has since gone on to amass a number of extra corporations, together with in-space manufacturing firm Made In Area, constructions corporations LoadPath and Roccor, engineering agency Oakman Aerospace and, most lately, Deployable Area Methods, a developer of spacecraft constructions and photo voltaic arrays.
These acquisitions have turned Redwire into a serious provider for the house business, fueling its progress. “Many individuals imagine that the following decade of house is a brand new gold rush. In that context, Redwire is offering the extremely specialised picks and shovels required for the house business,” Peter Cannito, chairman and chief govt of Redwire, mentioned in a March 25 name with buyers in regards to the deal.
That enterprise has made Redwire distinctive amongst house corporations going public by SPACs in that it has each revenues and income. The corporate reported $119 million in income in 2020, with adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) of $13 million. The corporate tasks income to develop to $163 million in 2021, with adjusted EBITDA of $20 million. By 2025, the corporate expects to develop to $1.four billion in income with an adjusted EBITDA of $250 million.
“Redwire has the distinctive mixture of profitability and breakout natural progress, which units us aside from SPAC friends in house and additive manufacturing,” mentioned Jonathan Baliff, president and chief monetary officer of Genesis Park Acquisition Company, on the decision.
Andrew Rush, president and chief working officer of Redwire, famous within the name the corporate has gained greater than $70 million in new enterprise in current months, equivalent to a photo voltaic sail for a NASA heliophysics mission, a robotic arm for the Vigoride tug being developed by Momentus and avionics for Firefly Aerospace’s lunar lander. “These wins underscore the boldness that we now have in our monetary projections,” he mentioned.
Redwire mentioned in an investor presentation that the money it raises from the deal might be “dry powder for strategic investments and continued pursuit of Redwire’s proprietary M&A [merger and acquisition] pipeline.”
“We additionally imagine there may be important alternative to speed up progress by strategic mixtures within the fragmented house panorama,” Paul Pastime, chief govt of Genesis Park, mentioned within the assertion saying the deal. “Redwire has established itself as a first-mover consolidator and an acquirer of selection, and we imagine its place might be additional improved as a public firm.”
Redwire will even pursue enterprise alternatives in 5 “strategic focus areas,” together with on-orbit servicing and meeting, low Earth orbit commercialization, digital engineering of spacecraft, house area consciousness and superior sensors and parts. These areas leverage capabilities from the businesses it has acquired, equivalent to Made In Area for on-orbit meeting and Oakman Aerospace for digital spacecraft engineering.
“We’re nicely on our method to reaching our five-year projection of $1.four billion in income by 2025 by natural means alone,” Cannito mentioned. “For extra upside, this transaction is with the chance to considerably improve this progress by persevering with our confirmed observe document of strategic acquisitions in addition to accelerated analysis and growth and extra capex.”
Redwire joins a wave of corporations within the house sector which have introduced plans to go public by SPACs. These have included within the final six months in-space transportation firm Momentus, house communications firm AST SpaceMobile, small launch car corporations Astra and Rocket Lab, imaging firm Black Sky and satellite tv for pc companies firm Spire. None of these offers have but closed, however shareholders in New Windfall Acquisition Corp., the SPAC that introduced in December an settlement with AST SpaceMobile, are scheduled to vote to approve the merger April 1.