Footprint International Holdco Inc., a maker of coating technologies that allow plant-based materials to compete with traditional plastic-based materials. It is going public via a merger with special-purpose acquisition corporation Gores Holdings VIII Inc., the companies said in a joint statement on Tuesday.
This deal values the combined entity at about $1.6 billion including debt, the companies said on Tuesday.
Footprint, founded in 2014, offers plant-based solutions to help companies cut carbon emissions and landfill waste. Their customers include Walmart (WMT.N), McDonald’s (MCD.N), Kraft Heinz Co (KHC.O), and Nestle (NESN.S).
The deal with Gores Holdings VIII Inc (GIIX.O) will provide Gilbert, Arizona-based Footprint about $805 million in gross proceeds. It includes $345 million from the special purpose acquisition company’s trust account.
SPACS are publicly listed companies that are raised to merge with a private company at a later date. For the company going public, a merger with a blank-check company serves as an alternative to a traditional IPO.
“With corporations, regulators and consumers alike increasingly demanding high-quality, sustainable alternatives to single-use plastic, foam and other products. Footprint’s solutions are capitalizing on a growing $315 billion annual market opportunity that is converting to environmentally friendly solutions as quickly as possible,” the companies said in a press release statement.
Footprint says its plant-based fiber bowls, clamshell containers, trays, cups, and other consumer packaging products have already eliminated more than 61 million pounds of plastic. They’re in some of the country’s biggest supermarkets, including Walmart, Target, Costco, Whole Foods, Albertsons’ Safeway, Kroger, Fry’s, Aldi, Wegmans, and Trader Joe’s.
And the company is collaborating with major brands, including newly public Sweetgreen, McDonald’s, Kraft Heinz, Tyson Foods, Beyond Meat, Chick-fil-A, Dunkin, Panera Bread, and True Food Kitchen.
In July, the company also agreed with the Phoenix Suns, re-naming the NBA team’s home complex to Footprint Center. While also working with the sports team to eliminate single-use plastic and test new technologies at their facility.
Gores is among Wall Street’s most prolific SPAC dealmakers. It has raised billions of dollars through multiple blank-check vehicles so far.
The footprint was founded in 2014 as a material science company using plant-based fiber technology. “With corporations, regulators and consumers alike increasingly demanding high-quality, sustainable alternatives to single-use plastic, foam and other products.
Footprint’s solutions are capitalizing on a growing $315 billion annual market opportunity that is converting to environmentally friendly solutions as quickly as possible,” the companies said.
The footprint is expected to begin trading on the Nasdaq in the first half of 2022 under the ticker symbol “FOOT