Shares of
Mudrick Capital Acquisition Corp. II (NASDAQ:MUDS) surged 16% on Tuesday after the special purpose acquisition company (SPAC) announced its plans to bring The Topps Company public.
The merger values Topps at an enterprise value of $1.3 billion, or roughly 12.5 times its projected adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2021. The sports card and candy company enjoyed a 23% jump in sales in 2020 to a record $567 million.
Topps is working to broaden its e-commerce and mobile applications as part of its digital initiatives. It's also making a push into the rapidly expanding non-fungible tokens (NFTs) market.
"We believe Topps' culture of innovation, strong management team, expanding margins, robust cash flow, and conservative balance sheet set it apart from other consumer growth companies," Mudrick Capital Founder and Chief Investment Officer Jason Mudrick said in a press release. "It also is well situated with a universally recognized brand to capitalize on the fast-emerging market for collectible NFTs."