LITTLE ROCK, Ark., USA – Westrock Coffee Company has entered into a definitive agreement with the Arkansas Teacher Retirement System (“ARTRS”) to make an aggregate investment of $25 million in the Company through the purchase of 2,500,000 shares of Company common stock at a price of $10.00 per share.
This announcement represents an incremental investment over and above the $75 million equity investment the Company previously announced on June 30, 2023.
Scott T. Ford, CEO and Co-founder stated, “We are excited to announce today’s decision by ARTRS to invest $25 million in Westrock Coffee, which adds to the $75 million equity investment we announced last month committed by HF Capital, one of our original investors, and the Herbert Hunt family, a new investor.
As an Arkansas-based company, we are excited to partner with a new long-term investor who believes in our vision and provides such an important service to educators in our great state. The additional capital from ARTRS will support our continued strategic efforts to expand our extracts and ready-to-drink business at our Conway, Arkansas facility which remains the gateway to future EBITDA expansion and a key enabler of future growth.”
Mark White, Executive Director of ARTRS stated, “We are proud to announce this partnership with Arkansas-based Westrock Coffee Company. This investment contributes to the retirement security of Arkansas educators, but it also supports jobs and economic expansion for Arkansas. That benefits everyone in our state – Arkansas educators, taxpayers, and families.”
The investments by HF Capital, the Herbert Hunt family, and ARTRS are expected to close in August 2023, subject to the satisfaction of customary closing conditions.
These equity investments, together with the Company’s previously announced credit agreement amendment, represent the culmination of the Company’s capital plan to ensure the necessary financing is in place to complete not only Phase 1 and 2 of the Company’s coffee extracts and ready-to-drink facility, which consist of high-speed can and glass bottle lines, a multi-serve bottle line, and bag-in-box and bulk lines, but also the two additional can lines and an industry leading product development lab and FDA certified pilot plant the Company announced on June 30, 2023.
Wells Fargo Securities served as a Capital Markets Advisor to Westrock Coffee. Wachtell, Lipton, Rosen & Katz served as legal counsel to Westrock Coffee.
