Redwire, a space infrastructure company backed by AE Industrial Partners, has agreed to merge with Genesis Park Acquisition Corp. (NYSE: GNPK) and will trade on the New York Stock Exchange once the transaction is completed.
The boards of directors of Redwire and Genesis Park, a special purpose acquisition company, have approved the merger deal that is expected to close by the end of the second quarter of 2021 and gives the combined entity a valuation of $615 million, according to a joint statement released Thursday.
Jacksonville, Florida-based Redwire offers space infrastructure technology and services to customers in national security, civil and commercial markets. The company develops on-orbit servicing, assembly and manufacturing capabilities and advances 3D printing and robotic assembly in space. It has more than five decades of space flight experience and over 100 patents and applications in the field of space infrastructure.
Redwire has more than $150 million in contracted backlog and expects to record $163 million in 2021 revenue. The company projects its revenue to grow to $1.4 billion by 2025 with adjusted earnings before interest, taxes, depreciation and amortization of approximately $250 million.
“Today, the influx of private capital, new public sector space initiatives and decreased launch costs are driving tremendous growth in the space industry, which is projected to exceed $2 trillion by 2040,” said Peter Cannito, chairman and CEO of Redwire.
Cannito added that Genesis Park’s industry relationships and aerospace, financial and operational experience will help Redwire advance growth in the public market. He will continue to lead Redwire following the merger’s completion.
Upon closing of the merger and assuming no redemptions by Genesis Park stockholders, Redwire’s existing shareholders will hold about 55 percent of the fully diluted shares of common stock in the combined entity and AE Industrial Partners will continue to remain a significant shareholder.
The transaction is expected to bring about $170 million cash to Redwire’s balance sheet and will be further backed by a $100 million fully committed private investment in public equity of common stock priced at $10 per share. Crescent Park Management and Senvest Management participated in the PIPE.
Jefferies and Kirkland and Ellis respectively serve as financial and legal advisers to Redwire in the deal.
Greenhill and KPMG act as financial advisers while Jefferies serves as capital markets adviser and sole placement agent for the PIPE.
Willkie Farr & Gallagher and Sheppard, Mullin, Richter & Hampton advise Genesis Park on the deal’s legal aspect.