Redwire chief working officer Andrew Rush reveals former NASA administrator Jim Bridenstine a spacecraft mannequin of subsidiary Made In Space.
Space infrastructure conglomerate Redwire Space is making ready to go public, asserting Thursday that it’s the newest in a string of area companies to merge with a SPAC.
Redwire, shaped final 12 months by non-public fairness agency AE Industrial Partners, is merging with particular goal acquisition firm Genesis Park, which trades below the ticker GNPK. The deal is predicted to shut by the tip of the second quarter, with the merger leading to Redwire itemizing on the New York Stock Exchange.
A SPAC is basically a shell firm that raises cash by way of an preliminary public providing to purchase one other agency.
“When you look around the industry now, you have a lot of the older traditional space players and you have a lot of these new space entrants, many of them are pre-revenue,” Redwire Chairman and CEO Peter Cannito advised CNBC.
“Redwire is kind of the hybrid: We’re offering that middle ground of tremendous flight heritage but also the disruptive technologies.”
The firm is concentrated on area infrastructure, which it estimates is at the moment a $15 billion market.
Redwire’s assortment of companies consists of applied sciences comparable to navigation sensors, photo voltaic arrays, deployable construction, in-space manufacturing and robotic arms.
The conglomerate expects to add about $170 million in money to its stability sheet from the merger. This would come with the proceeds from a $100 million PIPE — or non-public funding in public fairness — spherical, joined by buyers Senvest Management and Crescent Park.
The merger values Redwire at a $615 million enterprise valuation, in accordance to the businesses. Cannito famous that AE Industrial Partners will “stay significantly invested” following the merger, as its largest single shareholder.
Since AE shaped Redwire final June, the corporate has been on a regular spree of acquisitions.
Redwire first acquired satellite tv for pc part enterprise Adcole Space and aerospace agency Deep Space Systems after which acquired Made In Space, a 3D-printing specialist.
The conglomerate additionally snapped up satellite tv for pc applied sciences agency Roccor, engineering service LoadPath, modular spacecraft builder Oakman Aerospace and satellite tv for pc mechanisms firm Deployable Space Systems.
Altogether, in accordance to Redwire, the mixed administration groups convey greater than 50 years of area expertise, with over 150 missions.
“We’ve taken a very differentiated approach to the market here by combining different companies with extraordinary flight heritage,” Cannito mentioned.
These companies are “used to being that premier mission partner to organizations that are deploying space-based capabilities,” he added, whether or not these companions are NASA, the Pentagon or others.
Redwire believes extra offers could also be forward, Cannito mentioned, noting that going public and “having that public equity as a currency significantly increases our attractiveness as an acquiring platform.”
“This allows us to be opportunistic, to continue our already proven track record of M&A,” Cannito mentioned. “I think we’re going to be looking to do some bigger targets and this gives us the opportunity, with the flexibility to do that as required.”
Redwire introduced in $119 million in income final 12 months, which it expects to develop to $163 million in 2021. The firm sees that accelerating to greater than $1.four billion in income by 2025, which Cannito mentioned is predicated on its merchandise.
“The dollars may pivot from government to commercial, and then our profile, in terms of our mix of customers, will pivot along with it. So it gives us a lot of staying power. It allows us to be flexible and to adjust and morph as the market changes,” Cannito mentioned.
Redwire is cash-flow constructive and expects to see its profitability proceed and develop to practically $200 million in free money movement by 2025.
“Our strategy is really about being that premier mission partner,” Cannito mentioned.
A composite picture displaying a Falcon 9 rocket booster lifting off and a jiffy later touchdown again close to the launchpad.
Cannito additionally emphasised the discount in value of accessing area, in addition to the rising variety of rocket builders launching to orbit, as an extra catalyst.
“We’re really excited and have a lot of respect for what SpaceX has done with the introduction of economical reusable launch. We’re also excited about all of the other launch providers that have entered into that space and have now, and as a result of the increased competition, driven down the cost of launch. There’s a lot of options now,” Cannito mentioned.
“I believe that there’s a direct correlation between reductions in launch costs and demand for space infrastructure,” he added.
Overall, Cannito pitched his firm as a agency that is in the course of the area financial system, which has grown to greater than $420 billion.
“When space wins, Redwire wins,” Cannito mentioned.