Westrock Coffee Co. closes on business combo, adds $350 million in borrowing power for growth

by Roby Brock ([email protected]) 990 views 

Little Rock-based Westrock Coffee Co. announced Monday (Aug. 29) the closing of its business combination transaction with Riverview Acquisition Corp.

In connection with the closing of the transaction, Westrock Coffee Holdings, LLC converted from a Delaware limited liability company to a Delaware corporation and changed its name to Westrock Coffee Company. Beginning today, the company’s common stock and certain warrants to purchase shares of common stock will begin trading on the Nasdaq under the ticker symbols “WEST” and “WESTW,” respectively.

In addition, the company announced that it entered into a new credit agreement that includes a $175 million senior secured first lien term loan facility and a $175 million senior secured first lien revolving credit facility. Proceeds from the transaction and credit agreement will be used to re-pay existing indebtedness and fund the company’s organic and strategic growth initiatives.

Westrock Coffee’s CEO and co-founder, Scott Ford, and the current management team of Westrock Coffee, will continue to lead the company. Riverview Chairman and CEO R. Brad Martin will join Westrock Coffee’s board of directors.

“This is a truly momentous day in the history of our company, as Westrock Coffee continues to supply the world’s most recognized brands with the world’s most transformative coffee, tea, flavors, extracts, and ingredients products,” said Ford. “Accessing the public markets is not only validation of the efforts of our incredible team but will also enable us to expedite our growth in the U.S. and internationally, while capitalizing on the generational shifts in consumer preferences. I am confident in Westrock Coffee’s future and proud of the team that has led us to this important moment.”

Through retail, foodservice and restaurant, convenience store and travel center, non-commercial, CPG, and hospitality industry clients, Westrock Coffee currently provides over 20 million cups of coffee to the world daily. The company is also the largest custom, private label coffee and tea provider to restaurants in the United States by volume and the second-largest coffee extract provider in ready-to-drink coffee.

“I have great admiration for Scott Ford and Westrock Coffee Company,” said Martin. “The Westrock Coffee team is passionate in its commitment to its farmer partners, customers, and shareholders. Westrock Coffee is exactly the type of enterprise which should be in the public markets, and I’m delighted that Riverview could help accomplish that objective. I look forward to working with the Westrock Coffee team in the months ahead.”

Members of Westrock Coffee’s leadership team will ring the opening bell at the Nasdaq stock exchange at 9:30 a.m. ET on August 31, 2022, to celebrate the successful transaction.

Shares of Westrock Coffee (NASDAQ: WEST) closed trading Monday at $11.51.