The combined company will be named Footprint International, which will be listed on NASDAQ, with an enterprise value of $1.6bn, upon closing
Footprint develops advanced coating and process technologies. (Credit: Footprint.)
US-based materials science technology company Footprint International Holdco has agreed to merge with Gores Holdings VIII, to become a public traded company.
Gores Holdings VIII is a special purpose acquisition company (SPAC) controlled by an affiliate of asset management group Gores.
Under the terms of the agreement, the merger is expected to provide around $805m in gross proceeds to support the growth of the combined company.
The proceeds include $345m in cash, and around $460m in additional capital, including $150m Class C Preferred Financing which will be funded immediately.
The proposed merger has been unanimously approved by both the Board of Directors of both Gores Holdings VIII and Footprint.
It is expected to complete in the first half of 2022, subject to approval by Gores Holdings VIII’s stockholders and other customary closing conditions.
Upon closing, the combined company will be named Footprint International, which will be listed on NASDAQ, and have an enterprise value of $1.6bn, on a pro forma basis.
Footprint’s current equity holders will retain around 62% ownership in the company, and move 100% of their equity interests into the pro forma company.
As part of the merger, Footprint co-founder and CEO Troy Swope will be appointed as head of the combined company.
Swope said: “Our mission is to create a healthier planet and step one is to design, develop and manufacture plant-based fibre solutions as an alternative to single-use plastics.
“Today marks an exciting inflection point in our seven-year history inventing new materials that challenge the status quo.
“In the Gores team, we have found a partner with a proven track record of bringing leading companies to the public markets and a shared commitment to global sustainability.”
Established in 2014, Footprint develops a portfolio of plant-based sustainable solutions that deliver extended shelf life than plastic solutions, at a comparable price.
According to the company, its plastic-free solution offers extended barrier properties and enables customers to reach sustainability targets
Footprint claimed that it serves a wide range of food, beverage and consumer products companies, as their innovation partner.
Established in 1987, Gores Group is a global investment firm that closed ten business combinations reflecting around $60bn in transaction value.
Gores Group chairman and CEO Alec Gores and Gores Holdings VIII chairman said: “Footprint is a true pioneer and disruptor in sustainability, delivering leading technology and solutions that are revolutionising the use of plant-based materials.
“Increasing consumer and corporate demand for sustainable alternatives to plastic have created a tremendous, growing market opportunity that is expected to continue to fuel Footprint’s rapid growth and customer traction.
“We look forward to partnering with Troy and his exceptional, innovative management team as Footprint accelerates its powerful mission and solidifies its position at the forefront of the industry as a public company.”