Ex-Big Red Pros Seek New Acquisitions
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Ex-Big Red Pros Seek New Acquisitions

New Providence Acquisition (NPA), a consumer-focused special purpose acquisition company (SPAC), has closed a $230 million public offering. NPA is led by Alex Coleman and Gary Smith, two experienced consumer sector investors. UBS O’Connor, a hedge fund investor and part of UBS’ asset management division, is an anchor investor in the company.

Prior to the formation of NPA, Mr. Coleman was co-head of Citicorp’s merchant banking group, Citicorp Venture Capital and, earlier, a co-head of Dresdner Bank’s North American merchant bank.

Mr. Smith has an operational background in consumer-packaged goods. He began his career at PepsiCo in 1986 and in 2000 he became the chief operating officer of Red Bull North America. In 2007, Mr. Smith partnered with Citigroup Venture Capital and Goldman Sachs to acquire Big Red, an Austin, TX-based maker of red creme soda. In 2008, Keurig Dr Pepper purchased a minority interest in Big Red and in 2018 purchased the entire company.NPA plans to use the proceeds from its public offering to acquire both manufacturers and distributors of branded packaged goods in the consumer sector including food, beverages, products, and devices. Mr. Smith continues to manage a team of industry professionals to assist with product development, brand positioning and sales channel development.

“We believe the SPAC market lines up well with the opportunities we are seeing in the private market,” said Mr. Smith, CEO of NPA.  “The ideal size of an attractive target would have an expected market valuation of $700 million to over $1 billion, with a defensible market position and attractive growth prospects.  We are looking to combine the benefits of a SPAC, including up-front liquidity and future upside for shareholders of a private company at an attractive price, while also accelerating growth initiatives by leveraging our team and potentially expanding market share with our publicly traded equity.”

“NPA is very fortunate to have both an accomplished operating team as well as UBS O’Connor-managed funds as a partner in the management company,” said Mr. Coleman. “A SPAC is a very attractive vehicle for the right company to access the public equity markets in an expedited way.  NPA’s relationship with the UBS O’Connor-managed funds combined with the operational resources of Gary and his team provide NPA with a competitive advantage not just in identifying a good company, but also in delivering additional shareholder returns.  We are looking forward to engaging with businesses which could benefit from the resources we can provide.”

New Providence Acquisition is traded on the NASDAQ under the symbol NPAUU.

© 2019 Private Equity Professional | September 23, 2019

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