The largest e-commerce platform for higher-end BBQ grills and outdoor living products is going public with a SPAC deal announced Tuesday.
The SPAC Deal: BBQGuys announced a SPAC merger with Velocity Acquisition Corp VELO. The deal values the company at an enterprise value of $839 million.
The company will trade as ticker BBQG on the Nasdaq after the merger is complete. Public VELO shareholders will own 24% of the company after the merger.
Investors in the company include the first family of football with Archie Manning, Eli Manning and Peyton Manning, as well as Cooper Manning. NFL Hall of Famers LaDainian Tomlinson and Steve Hutchinson are also investors in the company.
About BBQGuys: Working as a partner for leading brands and with ownership of premium grill brands, BBQGuys is the largest e-commerce platform for higher-end BBQ grills. It also sells grilling accessories and outdoor kitchen products.
The company was founded in 1998, and in addition to its products, it offers a full consumer experience with deep sales and customer support.
BBQGuys launched its first owned brand in 2013 with Blaze.
Growth Ahead: Using a data-driven approach, BBQGuys is also filling in new market areas and price points to appeal to new customers.
In 2021, BBQGuys launched a marketing campaign with the Manning family, giving the company new brand awareness and possibly future customers.
The company will expand into the professional market and new categories to continue its growth. BBQGuys lists a total addressable market size of $46 billion made up of $7 billion for global BBQ, $17 billion for meats, rubs and spices, and $22 billion for outdoor living.
Financials: BBQGuys has 43 consecutive quarters of year-over-year revenue growth and positive EBITDA. The company posted revenue of $254 million in fiscal 2020, up from $151 million in fiscal 2019. Revenue grew at a compounded annual growth rate of 30% from fiscal 2005 to fiscal 2020.
BBQGuys expects revenue to increase at a compounded annual growth rate of 26% from fiscal 2020 to fiscal 2023. The company’s revenue guidance is $332 million in fiscal 2021 and $415 million in fiscal 2022.
Price Action: VELO shares are up 1.66% to $9.82 on Tuesday.
(Photo: BBQGuys YouTube video featuring Eli and Archie Manning)
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