Footprint to go public in $1.6bn SPAC deal
14:22, 14 December 2021
Materials science company Footprint on Tuesday agreed a merger and initial public offering (IPO) deal with special purpose acquisition company (SPAC) Gores Holdings VIII (GIIX), valuing the company at around $1.6bn (£1.2bn).
Founded in 2014 by former Intel engineers Troy Swope and Yoke Chung, Footprint offers plant-based packaging solutions for companies such as Walmart, McDonald's, Kraft Heinz and Nestle to help cut carbon emissions and landfill waste.
“The balance sheet strength of the combined company is anticipated to enable Footprint to expand our operations and geographic reach as we scale our technology to meet record customer demand,” co-founder and CEO of Footprint Troy Swope said in a press release.
Increasing consumer demand
“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,” Gores Holdings VIII chair Alec Gores said.
The agreement with Gores Holdings VIII provides Footprint with $805m in gross proceeds, including $345m from the SPAC itself. The proceeds also consist of an oversubscribed private investment of $460m.
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After the deal closes in the first half of 2022, the company based in Gilbert, Arizona will list on the NASDAQ under the “FOOT” ticker.
Alec Gores' Gores Group is also in the process of taking Volvo's electric vehicle unit Polestar public.
Footprint’s products have already led to a global redirection of 61 million pounds of plastic waste from entering the air, earth, and water working with leading global consumer brands.