SPACial Report on the Vintage Wine Estates Merger: Rabobank Liquid Assets Podcast
The $690m deal may not be the biggest we see in 2021, but it could sent off a new trend in M&A. In this guest podcasts, Rabobank takes a look at the deal and what makes it so distinctive.
SPAC
As one of the largest wine companies in the US, Vintage Wine Estates, recently announced a merger with a special purpose acquisition company (SPAC).
With so much money flowing out of central banks and an investor class looking just about anywhere for a reasonable return on investments, SPACs - also called ‘blank-check’ companies - are surging in popularity.
Merging with a SPAC is an alternative to a traditional IPO, with fewer regulatory hurdles and often leaving the resulting public company with a massive infusion capital.
The rise of SPACs is going to impact M&A in the beverage industry for years or even decades to come, and this is a critical moment for industry leaders to understand how they work and the knock-on effects of their startling rise to prominence.
On this episode of the Liquid Assets Podcast, Vintage Wine Estates CEO, Pat Roney, shares why he decided to take the SPAC path, how he plans to use the cash and shares some of the broader implications for the future of the beverage industry.
What is Covered in the Episode:
- Who is Vintage Wine Estates, “the most important wine company you’ve never heard of.”
- How do SPACs work, and why are they an attractive alternative to an IPO?
- Will the rise of SPACs change the M&A landscape? Will strategic buyers be turned off by inflated valuations?
Guests/Hosts: VWE CEO, Pat Roney; Rabobank’s Stephen Rannekleiv; Bourcard Nesin & Jim Watson.
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This episode was originally published on February 19, 2021.
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