Blackstone Griddle Company Eyes Nasdaq Listing With $900M Valuation Through SPAC Deal

Blackstone Products, the dominant player reshaping the outdoor cooking landscape, is set to go public following a definitive merger agreement with Ackrell SPAC Partners I Co. (Nasdaq: ACKIU). The griddle company founded by Roger Dahle will trade on Nasdaq under ticker “BLKS” once the transaction closes in Q2 2022.

Market Dominance in a Booming Category

The Logan, Utah-based Blackstone has carved out an impressive 80% share of the U.S. outdoor griddle market—a category it essentially created when launching its first 36-inch model in 2008. What makes this particularly compelling is that griddle cooking is expanding at roughly twice the pace of the broader outdoor cooking market through 2023, offering Blackstone significant runway for growth.

The company’s appeal lies in its core value proposition: griddles enable faster, more versatile cooking compared to traditional charcoal, gas, and pellet grills, allowing consumers to prepare breakfast, lunch, and dinner outdoors. This versatility drives higher engagement and repeat usage, distinguishing Blackstone in a competitive space.

Financial Performance Speaks Volumes

Blackstone’s growth trajectory has been exceptional. The company achieved a 72% net revenue CAGR from 2016 through 2020, with approximately $450 million in estimated 2021 revenue expected to surge to over $600 million in 2022. The 2020 financial year showcased 98% free cash flow conversion, demonstrating operational efficiency and profitability at scale.

The $900 million pro forma enterprise valuation translates to approximately 11.1x the 2022 estimated adjusted EBITDA—a reasonable multiple reflecting both historical performance and future growth potential.

Strategic Assets Beyond Core Products

Beyond its griddle lineup, Blackstone commands meaningful advantages. The company holds 24 patents with 31 more pending, while five new product lines are in development. A robust portfolio of branded accessories and consumables provides higher-margin revenue streams, supplementing core griddle sales.

The brand’s social media presence stands out in the industry, fostering a passionate and engaged consumer community that amplifies word-of-mouth marketing and brand loyalty. Deep relationships with retail giants—Walmart, Lowe’s, and Amazon—combined with direct-to-consumer channels, create a diversified go-to-market strategy.

Transaction Structure and Capital Deployment

The merger will inject approximately $95 million in gross proceeds into Blackstone, assuming no shareholder redemptions. The capital composition includes $31 million in PIPE (common stock at $10.00 per share) from institutional investors led by FS Investments, plus $111 million in convertible notes due 2027 bearing 9.875% annual interest.

The convertible notes feature a $11.50 initial conversion price, representing a 15% premium to the common stock issue price. Investors hold conversion rights at any time, while Blackstone can redeem notes after April 15, 2025, subject to stock price and liquidity conditions.

Expansion Opportunities on the Horizon

Management sees substantial whitespace in the griddle category and outdoor cooking segment broadly. Roger Dahle highlighted plans to increase domestic market penetration while pursuing international expansion—markets where griddle cooking remains underpenetrated compared to North America.

The capital infusion will accelerate marketing initiatives, fuel new product development, and support geographic expansion, positioning the combined company to capture a larger slice of an expanding market.

Leadership and Closing Timeline

Roger Dahle will lead the combined entity as Founder and CEO, bringing domain expertise and entrepreneurial vision. The transaction carries standard closing conditions, including Ackrell shareholder approval, SEC registration statement effectiveness, and Nasdaq listing approval. Closing is targeted for Q2 2022.

Nomura Securities serves as sole financial advisor to Ackrell, with Barclays Capital and Nomura acting as capital markets advisors and PIPE placement agents. O’Melveny & Myers and Ellenoff Grossman & Schole serve as legal counsel to Blackstone and Ackrell, respectively.