Packable, a U.S. e-commerce startup backed by Carlyle Group Inc. announced on Thursday (Sep 9) it has agreed to merge with Highland Transcend Partenrs I Corp, a special purpose acquisition company (SPAC) in a deal worth $1.55 billion.
The Packable – Highland Transcend deal includes $180 million of private investment in public equity (PIPE) that will be led by Fidelity Management & Research Company, along with participation from Luxor Capital, Lugard Road Capital, Morningside and Park West Asset Management.
Packable – Highland Transcend Deal
Last year in November, private equity firm Carlyle Group invested more than $250 million in Pharmapacks, a Packable-operated retailer focused on health, personal care and beauty products. The investment valued the e-commerce firm at $1.1 billion just as the coronavirus pushed more consumers to shop online.
Packable was founded in 2010 and is one of the largest retailers in the United States. It sells health and beauty products through e-tailers, including Amazon, eBay, Google, Target and Walmart.
The Hauppauge, New York-based company made $373 million in revenue in 2020 and is on track to generate $456 million this year.
“Packable will expand geographically, invest in founder-led brands, and add new verticals such as data science, marketing and media services,” Packable Chief Executive Andrew Vagenas said in an interview.
According to the terms of the Package – Highland Transcend deal, Packable’s existing shareholders will accrue 71% of the combined company, Highland Transcend SPAC founders and investors will receive 19% and PIPE investors will receive the remaining 11%.
SPACs are non-operating publicly-listed companies whose purpose is to raise money from stock market listings with the purpose of merging with a private company and making it public. Last year in December, the Highland Transcend SPAC raised $300 million in its IPO.
SPAC execs Dan Nova and Ian Friedman are expected to join Packable’s board once the deal closes.
