Could Redwire, A Space Infrastructure, Mini-Space ETF Company, Be Best In Industry?

Could Redwire, A Space Infrastructure, Mini-Space ETF Company, Be Best In Industry?

The global space market could hit $2 trillion by 2040 according to some industry estimates. Several privately held space companies are making their way to the public market, including several deals done via SPACs.

A recent space stock going public via SPAC is going unnoticed and could be the best in the industry.

The SPAC Deal: Redwire Space is set to go public with Genesis Park Acquisition Corp GNPK in a deal valuing the company at a pro forma value of $645 million.

Shareholders of Genesis Park Acquisition will own 24% of the company if the merger is approved.

According to the company’s presentation, “When space wins, Redwire wins.”

Genesis Park has strong relationships with NASA, the U.S. Air Force and the U.S. Space Force. The SPAC merger represents the first space company to go public with collaboration and validation from both a space/aerospace sponsor and space/aerospace SPAC partner.

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, stated the press release.

Redwire Fast Facts:

 Redwire Space is a pure-play space company covering several areas of the market, making the company similar to a mini-space ETF in its own right.

• The company offers more than 50 years of experience in space flights and over 150 missions flown, plus unmatched innovations in space infrastructure, including over 100 industry patents.

• Redwire’s infrastructure services enable nearly every space mission, according to the company.

• Redwire is the undisputed leader in the rapidly expanding 3D printing, manufacturing and robotic assembly in space. And, it was the first to make 3D print tools and spares in space.

• The company has enabled every U.S. mission to Mars, went to Pluto, landed on multiple asteroids and guided every GPSS mission.

• Redwire launched the first spacecraft that built and assembled itself.

Related Link: 9 Space SPACs For Investors To Consider Ahead Of Ark Space ETF

Growth Ahead: Entering the next wave of space growth, “Redwire is supplying the picks and shovels that enable nearly every space mission,” Peter Cannito, Redwire chairman and CEO said.

The space market is growing with lower launch costs and the rise of national security concerns. Five key strategic areas of growth for the company are on-orbit servicing, assembly and manufacturing; low-Earth orbit commercialization; digitally engineered spacecraft; space domain awareness; and advanced sensors and components.

Redwire said it was purpose-built to be a pure-play space company. The SPAC merger enables the company to increase its research and development and consider additional mergers and acquisitions.

Financials: In fiscal 2020, Redwire had revenue of $119 million and EBITDA of $13 million. 

Redwire is estimating fiscal 2021 revenue of $163 million split by 52% civil, 34% national security and 14% commercial/other. It has positive and growing adjusted EBITDA and cash flow.

Redwire sees compounded annual revenue growth of 72% from 2021 to 2025 when the company is anticipated to have a revenue split of 20% civil, 39% national security and 41% commercial/other.

Redwire has a pipeline that could be worth $23 billion from identifiable contracts. The company’s contracted backlog is at $150 million.

GNPK Price Action: Shares of Genesis Park Acquisition have traded as high as $11.75 since the SPAC merger was announced. As of Wednesday morning, shares are up 0.68% at $10.40.

Related Link: Want to learn more about SPACs? Go to "SPACs Attack" hosted by Chris Katje and Mitch Hoch on Benzinga's YouTube channel. 


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