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Westrock Opens Books for SPAC DealLock Icon

2 min read

You know by now that Westrock Coffee Co. LLC of Little Rock announced last month that it was going public through a deal with Riverview Acquisition Corp. of Memphis (Nasdaq: RVACU).

But you might have missed that Westrock also released its investor presentation, which provided the first public look into its books.

The custom coffee and tea manufacturer reported revenue of $551 million in 2020 and $698 million a year later. Westrock projects $960 million in revenue this year, followed by $1.06 billion in 2023.

Westrock reported a net loss of $128.9 million in 2020, but its adjusted earnings before interest, taxes, depreciation and amortization were $33.6 million that year.

(In February 2020, Westrock bought S&D Coffee & Tea of Concord, North Carolina, in a deal worth $405 million.)

In 2021, Westrock reported a net loss of $21.3 million and an adjusted EBITDA of $47.2 million.

This year, the company projects net income of $23.8 million and an adjusted EBITDA of $75 million.

Conway plant update

If you recall, Westrock announced in December that it had bought the former Kimberly-Clark plant in Conway. Westrock said at the time that it was making a $100 million investment in the 524,000-SF facility.

In its presentation filed last month, the company said the plant is in the engineering and design phase, “and we are in active discussions with prospective customers related to price, terms, volume and commitments.”

The potential capacity after the buildout includes 800 million single-serve cups, 700 million cans and 100 million pounds of roasted coffee. Managers expect the plant to be “revenue generating” in late 2023, with production ramping up during 2024.

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