Carbon-negative alternative plastics manufacturer Origin Materials plans to merge with Artius Acquisition for $925 million in cash and stock, the companies announced today.
The transaction is comprised of Artius’ $725 million of cash held in trust, assuming no redemptions, and an oversubscribed $200 million fully committed PIPE at $10 per share, including investments from Danone, Nestlé, PepsiCo, Mitsubishi Gas Chemical and AECI, as well as certain funds and accounts managed by Sylebra Capital, Senator Investment Group, Electron Capital Partners, BNP Paribas AM Energy Transition Fund and affiliates of Apollo.
The transaction is subject to a minimum cash balance of $525 million in Artius at closing after giving effect to any shareholder redemptions.
Origin extracts chemicals from plants to manufacture an environmentally friendly material used as an alternative to plastic.
Following the expected close in the second quarter, the combined company would have an estimated equity value of approximately $1.8 billion and will list on the Nasdaq under ORGN. Read more.
