CorpAcq: $1.6bn New York Stock Exchange listing ‘on track’ after London snub
An investment group founded by the brother of a former Take That singer remains on track to complete a $1.6bn (£1.26bn) merger and become a member of the New York Stock Exchange.
Cheshire-headquartered CorpAcq, which was founded by Simon Orange, first announced the deal with Churchill VII, a special purpose investment vehicle set up as a trust account by New York corporate financier Michael Klein, in August 2023.
The deal will see the combined group list on the New York Stock Exchange and trade as CorpAcq Group Plc. The merger is another blow to the London Stock Exchange which has been hit by a number of high-profile departures over the last year.
It was also rocked by UK chip designer Arm deciding to choose New York over London last year as it sought a $52bn valuation.
According to a new filing with the United States Securities and Exchange Commission ahead of the group’s merger, CorpAcq said the deal “continues to progress as planned” and is “expected to be completed in early 2024”.
However, a meeting due to be held on February 8 is expected to push back the deadline for the deal to be completed from February 17 to August 17.
Also as part of the filings, CorpAcq confirmed that it expects to report a revenue of approximately £729m for 2023, a 15 per cent increase on the previous year’s total.
Its adjusted EBITDA is also expected to total around £126m for the 12 months, a 17 per cent rise.
CorpAcq has more than 40 portfolio businesses including the likes of Cotton Traders, Aintree Plastics and Metcalfe Plant Hire.
In a statement, CorpAqc said: “Since the release of its financials for the first six months of 2023 on November 17, 2023, CorpAcq has continued to maintain its strong and profitable growth trajectory. As a result, management has reaffirmed guidance for 2023 revenue and adjusted EBITDA.
“This robust performance has been driven by CorpAcq’s continued focus on operational strength and resilience and is supplemented by management’s ongoing support for its diversified portfolio of subsidiaries.
“CorpAcq continues to deliver on its strategy and believes it remains well-positioned for future growth.”
CorpAcq said it expect to release its full-year results in the second quarter of 2024.
When CorpAcq published its half-year results, its revenue for the first six months of 2023 stood at £439m, up from £393m, while its EBITDA had increased from £62m to £73m.
As well as the new financial figures, CorpAcq has also confirmed it has agreed a new £300m committed term loan facility that refinances its existing £200m facility and includes £100m under a committed acquisition facility to support further acquisitions.
Mr Orange, who is the brother of former Take That singer Jason, said: “We are pleased to announce the successful signing of our debt refinancing strategy.
“With this optimised capital structure, we will have more financial flexibility and liquidity to fund the continued growth of our business and expand our acquisition pipeline.”
UBS AG London Branch and Crestline Investors Fund Liquidity Solutions Group acted as mandated lead arrangers and KPMG served as debt advisor for the debt refinancing transactions.
As well as being the founder and chairman of CorpAcq, Simon Orange is also the co-owner of Premiership rugby club Sale Sharks.