Video source: YouTube, Boxed Wholesale
Online bulk grocery retailer Boxed Inc announced Monday it will go public through a merger with special purpose acquisition company (SPAC) Seven Oaks Acquisition Corp (Nasdaq: SVOK) in a deal that would value Boxed at nearly $900 million.
The transaction will provide New York City-based Boxed with about $334 million in cash, including a $120 million private investment from investors including Avanda Investment Management, Onex Credit and Brigade Capital Management.
The new company will be led by Boxed chief executive officer and founder Chieh Huang, while Seven Oaks chairman and chief executive officer Gary Matthews will serve as board chairman.
The deal is expected to be completed by the end of the fourth quarter of 2021.
Founded in 2013, Boxed’s platform enables shoppers to buy bulk goods without needing a big-box store membership. In addition to groceries, the online retailer offers household, personal care and wellness items, along with pet products and office supplies.
With the pandemic accelerating the shift to e-grocery shopping in the US, Boxed said it saw its average order value reach $100 over the past year.
In a statement Monday, Huang said, “We are excited to take this important step forward to position Boxed for our next phase of growth. This transaction will [enable] Boxed to capitalize on the tailwinds that e-commerce businesses are experiencing. This capital will also [enable] us to fund B2B growth, third-party marketplace expansion and drive our unique SaaS [software-as-a-service] business.”
Huang told CNN Monday that Boxed chose a SPAC over a traditional IPO because the company will be able to raise a “quantum of capital” with fewer regulatory hurdles.
Back in 2018, Boxed turned down acquisition offers from The Kroger Company and Amazon.com Inc, choosing to remain a privately held company.
Source: Equities News