Industrial additives manufacturer Essentium plans to combine with Atlantic Coastal Acquisition in a deal that gives the combined companies a pro forma enterprise value of $974 million.
If approved, Essentium will trade on the Nasdaq under new ticker symbol ADTV. The deal is expected to close in the first quarter of 2022.
The proposed transaction is expected to deliver up to $346 million of net proceeds, assuming no redemptions and net of transaction expenses, including a fully committed PIPE of over $40 million led by institutional and strategic investors including BASF, Atalaya and Apeiron. Atlantic Coastal’s management team is also contributing $20 million to the PIPE.
Existing Essentium shareholders will roll over 100% of their equity into the combined company. Following the closing of the transaction, these shareholders are expected to hold approximately 64% of the issued and outstanding shares of common stock. Read more.
