Origin Materials to go public via $1.8 bln SPAC merger (updated)
17/02/2021 12:04
(Adds transaction details, background on Origin)
Feb 17 (Reuters) - Carbon-negative products maker Origin
Materials said on Wednesday it has agreed to go public through a
merger with blank-check firm Artius Acquisition Inc AACQ.O , in
a deal that values the equity of the combined entity at $1.8
billion.
The deal will provide Origin with gross proceeds of $925
million, including a private investment of $200 million from
Danone SA DANO.PA , Nestlé SA NESN.S , PepsiCo Inc PEP.O and
affiliates of Apollo Global Management APO.N among others.
Sacramento, California-based Origin helps turn carbon found
in biomass into useful products, its website showed, capturing
carbon in the process.
The company formed an alliance with Nestle and Danone in
2016 to produce and commercialize plant-based PET plastic, which
has a low carbon footprint. PepsiCo joined two years later.
Artius is a special purpose acquisition company (SPAC) - a
shell company that raises funds to acquire a private company -
raised $630 million through an initial public offering in July.
urn:newsml:reuters.com:*:nASA00WLT
SPACs emerged as Wall Street's most favored investment
vehicle last year and their popularity shows no signs of fading
in 2021. By the end of last week,144 SPACs had raised $45.7
billion, according to data from SPAC Research. urn:newsml:reuters.com:*:nL4N2K244A
Origin will be listed on the Nasdaq after the merger and
will trade under the new ticker symbol "ORGN".
BofA Securities is the exclusive financial advisor to
Origin.
(Reporting by Sohini Podder in Bengaluru; Editing by Shounak
Dasgupta and Sriraj Kalluvila)
((sohini.podder@thomsonreuters.com))