- The SPAC boom is now spreading to corporations, with cereal-maker Post Holdings the latest company to launch its own blank-check company.
- Post is seeking to raise $400 million for a SPAC that will acquire a company in the consumer products industry.
- The SPAC will be managed by Post’s current executive team, including its CEO and CFO.
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Corporations are now looking to get in on the SPAC boom, with cereal-maker Post Holdings the latest company to setup its own blank-check company.
According to a report this week, Post Holdings Partnering Corporation is a newly formed SPAC that is a subsidiary of Post Holdings. The blank-check is seeking to raise $400 million from investors to target an acquisition in the consumer products industry.
The SPAC will be managed by Post’s current management team, including its CEO, CFO, and chief accounting officer.
“PHPC intends to partner with a company in the consumer products industry that complements the experience and expertise of Post’s management team and is a business to which Post’s management believes it can add value,” the company said in a press release.
Post isn’t the first, nor will it likely be the last corporation, to launch or invest in a SPAC, which is an acquisition vehicle designed to bring a private company public with more haste and less disclosures than a traditional IPO.
Meanwhile, in November, Liberty Media launched a corporate-sponsored $575 million SPAC in hopes of acquiring a company in the media, communications, or technology industries.
But with so many SPAC vehicles, competition to land a deal is increasing, and the clock is ticking as SPACs typically only have a two-year timeframe to acquire a target company before they have to return the funds raised by investors.
Year-to-date, 141 SPAC vehicles have been formed, raising gross proceeds of $42 billion, according to data from SPACInsider.
Food brands that are expected to go public in the future that Post could target include Chobani, Just Eat, and Impossible Foods.