chieh huang boxed
Boxed

Wholesale grocery retailer and courier Boxed is set to go public in a deal with Seven Oaks Acquisition Corp., a special purpose acquisition company (SPAC), that would value the combined entity at nearly $900 million.

The deal is expected to close in the fourth quarter of 2021 and should provide Boxed with about $334 million in net cash proceeds, including a $120 million private investment from investors including Brigade Capital Management, Avanda Investment Management, and Onex Credit.

Boxed was founded in August 2013 by current CEO Chieh Huang along with Jared Yaman, Christopher Cheung, and William Fong.

The company provides bulk consumables to both businesses and consumers without requiring a store membership and has monetized its proprietary technology through a Software-as-a-Service ("SaaS") offering, inking a multi-year SaaS partnership agreement with Aeon Group, one of Asia's largest retail conglomerates.

"We are excited to take this important step forward to position Boxed for our next phase of growth," Mr. Huang said in a press release announcing the deal.

"This capital will also allow us to fund B2B growth, third-party marketplace expansion and drive our unique SaaS business. We look forward to partnering with the seasoned team at Seven Oaks as we leverage their operational and public company expertise," he added.

Gary Matthews, the chairman and chief executive officer of Seven Oaks Acquisition Corp., will serve as Boxed's chairman of the board when the business combination is complete.

Matthews stepped down from his CEO position at the publicly traded IES Holdings in August of last year then raised nearly $260 million through an initial public offering (IPO) for his SPAC, Seven Oaks.

In a statement discussing the Boxed deal, Matthews said:

"Boxed is a leading e-commerce platform with significant competitive advantages and multiple opportunities to accelerate growth and drive value creation. We are confident that by supporting Chieh and the talented management team with our proven operating playbook, Boxed will continue to achieve success in a rapidly growing market."

Read the original article on Business Insider