Hormone Therapy Firm Biote to Go Public Via Haymaker III SPAC
(Bloomberg) -- Biote Holdings, a provider of hormone-replacement therapies, is going public through a merger with blank-check company Haymaker Acquisition Corp. III.
The combination of Irving, Texas-based Biote and the special purpose acquisition vehicle will be valued at about $737 million, the companies announced Monday, confirming a Bloomberg News report. The transaction also includes about $80 million in debt financing from Truist Financial Corp. that will meet the minimum cash requirement to close the deal, an investor presentation showed.
The company opted for a debt facility instead of an equity placement because it’s cost-effective and expedient, said Biote Chief Executive Officer Terry Weber.
Founded in 2011 by obstetrician-gynecologist Gary Donovitz, Biote uses pellets inserted under the skin to deliver hormonal treatments to both men and women. It also trains practitioners to diagnose symptoms of potential hormone imbalance, and to perform the treatments.
“Often these symptoms are treated as mental health symptoms when really it’s a hormonal imbalance,” said Weber. She added that a majority of its customers are women between 45 and 64. Male clients account for about 20%.
Biote, which operates in 10 states in U.S., plans to expand into other parts of the U.S. as well as Latin America, Canada and Europe by 2023, she said.
Haymaker Acquisition III raised $317.5 million in its March initial public offering. Started by brothers Steven Heyer, former chief operating officer of Coca-Cola Co., and private equity investor Andrew Heyer, the blank-check company set out to find a target in the consumer products or services industry, according to its listing documents.
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