Brazil’s Lavoro Ltd said it would go public in the United States through a merger with special purpose acquisition company TPB Acquisition Corp I, in a deal that values the agricultural products retailer at $1.2 billion.
The deal is expected to rake in $225 million of cash proceeds for Lavoro, including a $100 million private placement from the SPAC’s backer The Production Board, Sao Paulo-based Lavoro said.
Lavoro, founded in 2017, offers seeds, fertilizers and crop protection products, among others.
The company said it expects to record $2.3 billion of revenue in 2022, up 63% from last year. The new capital would be used for retail expansion, acquisitions and to introduce new products, Lavoro added.
A SPAC is a publicly listed shell company that raises funds with the intention of merging with a private company within two years of floating its shares. The private firm goes public through the merger.
The SPAC sector has been torpedoed by several scrapped deals this year as market turbulence due to inflation and rising interest rates spook startups looking to go public.
Source: Reuters.com