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Rare-Revenue Generating Company SIGNA Sports Plans to go Public via SPAC

Based in Berlin, Germany, SIGNA Sports United GmbH is a global sports e-commerce and tech platform in Bike, Tennis, Outdoor and Team Sports with more than 7 million active customers and close to 500 million annual webshop visitors. SIGNA Sports United combines brands such as Wiggle, Chain Reaction Cycles,, Bikester, Probikeshop, Campz, Addnature, Tennis-Point, TennisPro, Outfitter and many more.

SIGNA Sports United entered into a business combination agreement with Yucaipa Acquisition Corporation (NYSE: YAC), a publicly-traded special purpose acquisition company led by Chairman and President Ron Burkle and CFO and COO Ira Tochner. The combination also includes the acquisition of the WiggleCRC Group, one of the largest online bike retailers globally, currently owned by Bridgepoint.

YAC has agreed to combine with SIGNA Sports United and the WiggleCRC Group based on a US$ 3.2 billion pro forma enterprise valuation.

Ron Burkle is personally investing US$ 50 million into the PIPE. The existing shareholders have agreed to convert 100 per cent of their ownership stakes into the new public company.

Unlike many SPACs currently, SIGNA Sports United actually generated revenue. In FY 2019, SIGNA Sports United generated actual revenue of US$ 644 million with gross profit of US$ 222 million.

Sources of Cash
Cash in Trust: US$ 345 million
Pro Form Equity: US$ 2.716 billion
PIPE: US$ 302 million

Citi acted as lead financial advisor to SSU. Moelis & Company LLC acted as lead financial advisor to YAC. Jefferies acted as capital markets advisor to YAC.

Citi and Jefferies LLC acted as co-placement agents on the PIPE.

Skadden, Arps, Slate, Meagher & Flom LLP acted as lead legal advisor to SSU, and Kirkland & Ellis LLP acted as lead legal advisor to YAC.

Keywords: The Yuicaipa Companies.

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