Blackstone Products is using the help of a special-purpose acquisition firm to go public. This deal will value the company at approximately $780 million. The deal is part of the many investments outdoor cooking equipment manufacturers are making this year.
The companies are looking to take advantage of the fact that more people make their meals at home during the pandemic. Earlier this year, well-known outdoor cooking equipment manufacturers Traeger Inc and Weber Inc went public via the more traditional public offerings route.
Details about the deal
Blackstone is joining forces with Ackrell SPAC Partners I (NASDAQ:ACKIU), a blank-check corporation that concentrates its efforts on consumer goods. The outdoor grill manufacturer’s girdles have become incredibly popular on social media, especially on Instagram and TikTok. This is what has mainly helped drive brand awareness
Market temperature
This deal comes as certain investors reduce their activity regarding publicly traded outdoor grill corporations. For example, shares of both Traeger and Weber have gone down by over 30% in this quarter.
Meanwhile, BBQGuys, an online grilling retailer, recently terminated a SPAC-based deal that would’ve been worth about $960 million. The company cancelled the agreement claiming that supply-chain disruptions were affecting business operations.
Blackstone’s Chief Executive Officer, Roger Dahle, is confident the company’s steady growth will help attract more investors. Blackstone expects to make $450 million in sales revenue this year. The following year, the company anticipates it will top $600 million.
Rise of SPAC-based deals
Blackstone Products was founded in 2008. It’s the latest outdoor cooking equipment manufacturer that has made a SPAC-based deal intended to accelerate growth and raise cash.
Such agreements are becoming more popular than the traditional IPO, which is largely because they give the company going public the ability to make projections that they wouldn’t be able to do if they take the traditional IPO route.
SPACs are shell companies that trade publicly and help raise money with the primary goal of teaming up with private companies to take them public. Once the private firm files the requisite financial statements with regulators, the agreement is approved.
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