COPPELL, Texas - Metroplex Trading Company, LLC, operating as GrabAGun, an online retailer specializing in firearms and related accessories, has announced a definitive business combination agreement with Colombier Acquisition Corp. II (NYSE:CLBR), currently valued at $250.54 million. The merger, expected to close in the summer of 2025, will result in the newly formed GrabAGun Digital Holdings Inc., with shares projected to trade on the New York Stock Exchange under the ticker "PEW". CLBR shares have shown impressive momentum, gaining nearly 15% over the past six months according to InvestingPro data.
Donald Trump Jr., recently appointed as an advisor to GrabAGun, will also become an equity holder upon the transaction's completion. He has expressed enthusiasm for the partnership, highlighting GrabAGun's commitment to the Second Amendment and its advanced digital retail platform catering to a new generation of firearm buyers.
GrabAGun, founded in 2010, has capitalized on the shift towards online shopping, particularly among younger, tech-savvy consumers. The company has reported strong financial performance with revenues of $99.5 million over the last twelve months as of September 30, 2024, and boasts a scalable financial profile with positive cash flow and robust margins. InvestingPro analysis shows CLBR maintains a GOOD overall financial health score, suggesting strong fundamentals heading into the merger. Get access to detailed merger analysis and 12+ additional ProTips with an InvestingPro subscription.
The transaction is valued at $150 million, with GrabAGun equity holders set to receive $100 million in stock (valued at $10.00 per share) in the combined company and $50 million in cash. The funds from the transaction will be allocated to strategic acquisitions, growth initiatives, and general corporate purposes.
Both companies' boards have approved the merger, which now awaits the approval of GrabAGun equity holders and Colombier II shareholders. All current GrabAGun equity holders have agreed to vote in favor of the transaction.
The merger is anticipated to bolster GrabAGun's position in the firearms and ammunition market, enabling further expansion and consolidation within the industry. It also aims to enhance customer outreach and drive revenue growth through Colombier II's media portfolio integration. CLBR stock has demonstrated notably low price volatility, trading at $11.79, near its 52-week high of $12.28. For comprehensive merger analysis tools and real-time updates, visit InvestingPro.
Legal counsel for the transaction has been provided by Ellenoff Grossman & Schole LLP for Colombier II and Olshan Frome Wolosky LLP for GrabAGun. Stephens Inc. served as the exclusive financial advisor to GrabAGun for the business combination.
The information for this article is based on a press release statement. Additional details and updates on the proposed transaction will be filed with the U.S. Securities and Exchange Commission and made available to the public.
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