AeroFarms merges with Spring Valley to become publicly traded company

US-based indoor vertical farming company AeroFarms has entered a $1.2bn merger agreement with a publicly traded special purpose acquisition firm Spring Valley Acquisition.

This deal will provide AeroFarms with proceeds of $317m.

Expected to close in Q2 2021, the transaction will be able to fund future farm development and general corporate purposes.

AeroFarms stated: “The transaction is valued at a fully diluted pro forma equity value of approximately $1.2bn assuming no redemptions by Spring Valley shareholders.”

Headquartered in Newark, New Jersey, AeroFarms is engaged in the production of leafy greens under the Dream Greens brand.

AeroFarms co-founder and CEO David Rosenberg said: “At AeroFarms, our mission is to grow the best plants possible for the betterment of humanity, and we are executing on this by taking agriculture to new heights with the latest in technology, innovation and understanding of plant science.

“Our technology empowers our operations – this is how we get closer to where the problems, opportunities and solutions are. We also have the capabilities to innovate fast by turning our crops a typical 26 times per year that allows us to continuously learn and improve yield and quality while simultaneously reducing capital and operating costs.

“Our business is at an inflexion point where we will scale up our proven operational framework and begin our expansion plans in earnest. With the support of Spring Valley, we not only have the capital in place to execute our plan, but also a sponsor who shares the same ESG philosophies to make a positive impact on the world while serving the interests of our shareholders.”

Upon completion of the merger, AeroFarms will become publicly traded on Nasdaq under the new ticker symbol ‘ARFM’.

Rosenberg will lead the newly combined company.

For this deal, J P Morgan Securities is acting as an exclusive financial adviser to AeroFarms while Spring Valley is being advised by Cowen.

Cowen and Wells Fargo Securities are acting as capital markets advisers to Spring Valley, and J P Morgan Securities, Cowen and Wells Fargo Securities served as the placement agents to Spring Valley with regard to the PIPE offering.