Gores Holdings, a blank check company formed by The Gores Group, filed and set terms for an upcoming IPO on Friday.
The Beverly Hills, CA-based company plans to raise $400 million by offering 40 million units for $10 each. At that price, the SPAC would command a market value of $500 million. IPO timing has not been determined.
Units consist of one share of its Class A common stock and one warrant. Each warrant entitles the holder to purchase one-half of one share of Class A common stock at a price of $5.75 per half share. It has 24 months to complete its acquisition or it will will redeem 100% of the public shares at a per-share price.
The Gores Group will own a 20% post-IPO stake in the company. It has committed to purchase 20 million warrants for $10 million in a concurrent private placement. The company notes that it may pursue an acquisition in a diverse group of industries, including industrials, technology, telecommunications, media and entertainment, business services, healthcare and consumer products. It highlights several of The Gore Group's carve-out acquisitions: The Learning The Learning Company from Mattel Corporation; VeriFone from Hewlett-Packard; Micron PC from Micron Electronics; Sagem Communications from the Safran Group; Stock Building Supply from Wolseley; the broadcast communications division from Harris Corporation; the electronics power systems business from TE Connectivity; Elo Touch Solutions from TE Connectivity; Therakos from Johnson & Johnson and Brand-Rex from Honeywell International.
The company's management consists of senior members at The Gores Group, including the private equity firm's Chairman and CEO, Alec Gores, and its President of Operations, Mark Stone.
Gores Holdings, which was formed in 2015, plans to list its units on the NASDAQ under the symbol GRSHU. Deutsche Bank is the sole bookrunner on the deal.
