Hot off of a deal that will see its products on store shelves nationwide, Garland-based TV Ammo is set to hit the public markets.
In an all-local deal, the maker of composite ammunition has inked a deal to merge with a subsidiary of Irving-based blank check company Breeze Holdings Acquisition Corp.—a move that will see the combined firm begin trading on the Nasdaq Capital Markets.
TV Ammo is the parent company of Garland composite ammunition maker True Velocity as well as LoneStar Future Weapons, which it acquired last November in a deal that it valued at around $84 million,
“True Velocity was founded with the mission to revolutionize the global ammunition industry, providing customers with a technologically advanced cartridge that outperforms traditional brass-cased solutions,” Kevin Boscamp, the company’s founder, chairman, and co-CEO, said in a statement. “We believe that partnering with Breeze provides us with the financial resources and experienced partners necessary for us to accelerate our growth.”
True Velocity targets the defense, law enforcement, and commercial sectors. Its composite-cased ammunition reduces weight 30% compared to brass-cased cartridges, providing what the company calls “exceptional accuracy and consistency” while reducing heat transfer to the weapon platform. It also reduces the required production footprint, while increasing shipping and logistics cost savings, the company said.
Deal values TV Ammo at $1.21 billion
As part of the deal, which is expected to close in the first quarter of next year, the combined entity will take on the True Velocity name and will continue to be led by Co-CEOs Boscamp and Chris Tedford, along with CFO Jeff Cutshall. The deal values the combined company at a post-transaction enterprise value of $1.21 billion, generating $76.8 million in cash and $50 million in debt.
With the money raised from the deal, True Velocity said it plans to expand into new markets and distribution channels, and fund general corporate and marketing expenses to fuel that growth. It also aims to ramp up production.
“We expect the proceeds from this transaction will allow us to achieve our target manufacturing capacity of 50 to 60 million rounds in 2023, and we look forward to working with our global partners to expand our market share,” Co-CEO Tedford said in a statement.
Partnerships with Bass Pro Shops and Cabela’s
The company aims to ramp up production partly due to its “landmark partnership” with national outdoor retailers Bass Pro Shops and Cabela’s. The three- to five-year agreement will see True Velocity sell its ammunition across all of the retailers’ channels, with plans to introduce additional products in 2023. The partnership also sets up an ammunition subscription service for at-home delivery.
“We intend to be a global disrupter for years to come,” Boscamp said.
‘We set out to find a company with emerging technologies’
TV Ammo has more than 100 employees and more than 300 patents across its product portfolio. Last October, its True Velocity subsidiary announced landing $30 million in debt financing from Silver Peak Partners, with plans to expand its nearly 66,000-square-foot facility in Garland.
The news comes as the number of SPAC mergers has declined this year. But as Reuters notes, this isn’t the first time Breeze has looked to take a company public. After announcing plans in January to take Italian space logistics and transportation company D-Orbit S.p.A public with an expected enterprise value of around $1.28 billion, the blank check company terminated the deal in August, citing changes in the financial markets.
“At Breeze, we set out to find a company with emerging technologies looking to disrupt its industry and deliver outsized growth,” J. Douglas Ramsey, chairman and CEO of Breeze, said in a statement. “After assessing numerous opportunities, we believe we have found just that company in True Velocity.”
Get on the list.
Dallas Innovates, every day.
Sign up to keep your eye on what’s new and next in Dallas-Fort Worth, every day.