Redwire is planning to go public via a SPAC merger

Redwire, an organization that has purchased a variety of space technology firms in the past year, revealed on March 25 that it’d go public by combining together with a SPAC (special-purpose acquisition corporation). According to the firm, Genesis Park Acquisition Corporation, a SPAC that went public in November 2020, would combine with Redwire. Redwire would raise $170 million in funding as part of the transaction, valuing the firm at $615 million. The sale is expected to conclude by completing the second quarter of 2021, during which Redwire will begin trading on the New York Stock Exchange.

In 2020 June, AE Industrial Partners,  a private equity group, established Redwire by merging two space technology firms: Adcole Space and Deep Space Systems. Redwire has also purchased many other firms, such as LoadPath and Roccor, Made In Space, Oakman Aerospace, as well as, most notably, Deployable Space Systems, a manufacturer of spacecraft structures as well as solar arrays. These acquisitions have driven Redwire’s development by positioning it as a global supplier to the space sector.  “Many people say the next ten years of space will be a fresh gold rush. Redwire is supplying the highly advanced picks and shovels needed for the space sector in that sense,” Peter Cannito, who serves as the chairman and chief executive officer of Redwire, stated in a call with shareholders on March 25.

Redwire is rare among space firms that have gone public via SPACs in that it does have both sales and earnings. In 2020, the firm took in $119 million in sales, including $13 million in modified earnings before EBITDA (interest, taxes, depreciation, and amortization). Revenue is forecast to hit $163 million in 2021, with an updated EBITDA of $20 million. By 2025, the corporation plans to generate $1.4 billion in sales and $250 million in the adjusted EBITDA. On the call, Jonathan Baliff, who is the president as well as chief financial officer of Genesis Park Acquisition Corporation, said, “Redwire has the rare mix of sustainability and breakout organic development, which puts us apart from the SPAC peers in space as well as additive manufacturing.”

In the call, Redwire’s president as well as chief executive officer, Andrew Rush, stated that the firm has recently earned over $70 million in new business, including a solar sail for the NASA heliophysics flight, a robotic arm for Momentus’ Vigoride tug, as well as avionics for the Firefly Aerospace’s lunar lander. “These successes reflect our trust in our economic projections,” he added. The money raised by the sale would be used as “dry powder for strategic acquisitions and ongoing exploration of Redwire’s proprietary M&A [merger and acquisition] pipeline,” according to a presentation to investors.

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