PureCycle Technologies Said in Talks to Go Public Via Roth SPAC
(Bloomberg) -- PureCycle Technologies LLC, a polypropylene recycling company, is in talks to go public through a merger with Roth CH Acquisition I Co., according to people with knowledge of the matter.
Newport Beach, California-based Roth, a special purpose acquisition company, is in discussions with prospective investors to raise about $200 million for a transaction, said some of the people, who requested anonymity because the talks are private. The merged entity would have a market value of $1.1 billion and an enterprise value of roughly $825 million, they said. As with all deals that aren’t yet finalized, it’s possible talks could collapse.
PureCycle and Roth representatives didn’t immediately respond to requests for comment.
This isn’t the first time that PureCycle has been near a SPAC merger. In April, Graf Industrial Corp. said it was negotiating with PureCycle. Graf later struck a deal with Velodyne Lidar Inc., a maker of sensors used in self-driving vehicles.
PureCycle, led by Chief Executive Officer Mike Otworth, this month said it had issued bonds to raise $250 million that would fund the construction of its first plant in Ironton, Ohio. That plant is expected to produce more than 105 million pounds of ultra-pure recycled polypropylene a year, it said.
Roth is led by Chairman and CEO Byron Roth and co-presidents Aaron Gurewitz and Rick Hartfiel. The vehicle raised $76.5 million in a May initial public offering and said at the time it would seek a target in any sector, though with a focus on business services, consumer, health care, technology or wellness.
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