Space tech company to IPO via SPAC deal
Redwire provides critical space infrastructure technology and services and, say the companies, is uniquely positioned to deliver critical solutions to meet the growing needs of national security, civil, and commercial customers for a full spectrum of activity in space. The company is the leading developer of on-orbit servicing, assembly and manufacturing (“OSAM”) capabilities, a technology deploying 3D printing that enables customers to build satellites and other spacecraft in space, solving the size and other limitations posed by launch dynamics.
Through the launch of raw materials into orbit, in-space manufacturing of component parts through 3D printing and other methods, and robotic assembly of highly functional objects, OSAM technology enables lower cost deployment and higher power capabilities. The advantages of its in-space manufacturing, says the company, will allow its customers to efficiently create more advanced products in space with greater performance characteristics than terrestrial based manufacturing methods, driving increased investment in space infrastructure from adjacent markets and the commercialization of space.
And the company says it sees increasing opportunities as decreasing launch costs continue to enable exponential growth in deployed space infrastructure.
“Space-based capabilities and services are improving lives on Earth every day, and Redwire is an invaluable mission partner, providing technology that has been at the forefront of space infrastructure from the beginning,” says Peter Cannito, Chairman and CEO of Redwire. “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. With our extensive space flight heritage and deeply innovative capabilities, we are accelerating humanity’s expansion into space by delivering reliable, economical and sustainable infrastructure for future generations.”
“As we enter this second golden age of space, Redwire is supplying the picks and shovels that enable nearly every space mission, supporting initiatives to help us better understand our planet, transform our space security infrastructure, and move humanity deeper into our solar system,” says Cannito. “We are thrilled to enter into this business combination with Genesis Park. With their extensive aerospace, operational and financial expertise and strong industry relationships, we are confident that Genesis Park is the right partner to propel Redwire’s growth in the public market.”
Genesis Park Acquisition Corp. (“GNPK”) is one of the first aerospace and aviation services special purpose acquisition companies, and was focused on companies that it saw as having significant growth prospects in the aerospace and aviation services sectors. The transaction values Redwire at a $615 million pro forma enterprise value, representing 9.6x estimated 2023 Adjusted EBITDA of approximately $64 million and 2.5x estimated 2025 Adjusted EBITDA of approximately $250 million.
Assuming no redemptions by Genesis Park stockholders, the Proposed Transaction is expected to deliver approximately $170 million cash to the Redwire balance sheet. The proposed transaction is further supported by a $100 million fully committed and oversubscribed private investment in public equity (PIPE) of common stock, priced at $10.00 per share, with participation by Senvest Management, LLC and Crescent Park Management, L.P.
“We intended to find a profitable partner with strong management, powerful intellectual property, and impressive organic growth,” says Paul Hobby, CEO and Director of Genesis Park. “Redwire achieves that vision by transforming the future of space infrastructure and services at a time when the space industry is on the brink of exponential growth.”
“Redwire is a proven, solidly profitable player in the space community and the undisputed leader in on-orbit 3D printing, servicing, assembly, and manufacturing,” says Hobby. “We also believe there is significant opportunity to accelerate growth through strategic combinations in the fragmented space landscape. Redwire has established itself as a first-mover consolidator and an acquirer of choice, and we believe its position will be further improved as a public company. We are very excited about Redwire’s growth potential and we look forward to partnering with Peter and his team as they help usher in this new era of space exploration.”
The transaction is expected to be completed by the end of the second quarter of 2021, and at that time, Genesis Park Acquisition Corp. will change its name to Redwire and the company will trade on the NYSE. The transaction, which has been unanimously approved by the Boards of Directors of Redwire and Genesis Park, is subject to approval by Genesis Park’s shareholders and other customary closing conditions.