Avenue's Boulevard to Acquire Dow's AgroFresh, Take Public
May 01, 2015
Boulevard Acquisition Corp. (NASDAQ: BLVD), a "blank check" acquisition vehicle formed by Avenue Capital Group, has agreed to acquire AgroFresh, the post-harvest specialty chemical business of The Dow Chemical Company (NYSE: DOW). Expected to close in 3Q, the transaction will result in AgroFresh becoming a publicly traded company on the NASDAQ with an anticipated initial enterprise value of $879 million— 8.7x its estimated 2015 EBITDA.
At closing, Boulevard will purchase AgroFresh in exchange for 18.4 million shares of Boulevard common stock and $626 million in cash for a total of $810 million (assuming a valuation of $10 per Boulevard share). Dow will initially hold roughly 40% of AgroFresh's shares, while Boulevard stockholders will hold the other 60%.