FREE - Odeon sees upside from a former SPAC's sweet deal for ingredient maker

An $80M sweetener brand acquisition yesterday might be the catalyst that draws investor interest to a below-the radar SPAC transition from earlier this year, Odeon Capital Group says. Whole Earth Brands (FREE) acquired the equity interests of Swerve for cash, netting it one of consumer products' fastest-growing brands - a maker of zero sugar, keto-friendly, plant-based sweeteners and baking mixes. That "breaks the seal" on Whole Earth's M&A strategy, Odeon says; it's its first deal since consummating its SPAC business combination this summer. Swerve's erythritol-based sweetener behaves like sugar in drinks or baking, and has been growing rapidly with 150% compound annual growth since 2016. Odeon expects "ample channel synergies and leverage points" as it's integrated into what should become the largest natural sweetener player in North America. The deal is not only a strategic fit, but it offers scale in North America and should offer about $3M in post-integration

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Odeon sees upside from a former SPAC's sweet deal for ingredient maker