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CarLotz to go public through SPAC merger
Posted on Thursday, 22 October 2020 13:48
Special purpose acquisition company Acamar Partners Acquisition is buying US-based used vehicle retail disruptors with the industry’s only consignment-to-retail sales platform CarLotz in a deal worth USD 827.00 million.
Following closing of the acquisition, slated for the fourth quarter of 2020, the combined business will take the target’s name and will be listed on Nasdaq under the symbol LOTZ.
The consideration represents 0.9x 2022 estimated revenue of USD 945.00 million and 6.8x 2022 estimated gross profit of USD 121.00 million.
Acamar Partners will receive funding for the acquisition from USD 311.00 million cash-in-trust and USD 125.00 million of private investment in public equity (PIPE) proceeds, which has been fully committed by a group of investors, enabling the combined entity to retain up to USD 321.00 million of cash following the transaction for working capital and fund growth.
Fidelity Management & Research Company, KAR Global, McLarty Diversified Holdings, TRP Capital Partners have agreed to invest in the blank check company.
CarLotz not only serves consumers seeking to sell a used vehicle, but also many of the largest corporate vehicle remarketers in banking, rental, fleet management, original equipment manufacturers and other markets.
Michael Bor said in an interview that the company has seen a shift in consumer willingness to do a vehicle transaction online following the impacts of the coronavirus pandemic.
CarLotz has around 125 employees and took a USD 1.70 million US government loan under the Paycheck Protection Program, which the group expects to pay back.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 161 deals targeting automobile dealers announced worldwide in 2020 to date.
In the largest of these, US-based Lithia Motors announced a public offering to raise proceeds of USD 700.00 million.
Atlantic Automotive Group, Atlantic Central Storage, Pangda Automobile Trade and Luxgen Motor, among others, have also been targeted in 2020 to date.
© Zephus Ltd