SPAC HPX Corp. ( NYSE: HPX ) intends to merge with Brazilian environmental services provider Emergencia Participacoes, a division of Ambipar Group, in a deal that pegs the enterprise value of the combined company at around $581M.
The companies said the deal will generate gross proceeds of at least $168M for the combined company through committed PIPE subscriptions and non-redemption agreements with certain institutional and high net-worth investors.
Following the closing, the combined company will change its name to Ambipar Response, with Ambipar Group retaining at least a 50% stake. The deal, which is expected to close during the second half of the year, is subject to HPX shareholder approval.
The combined company’s shares are expected to trade on NYSE under the symbol AMBI.
Based in Brazil, Emergencia Participacoes, also known as Ambipar Reponse, provides environmental services to customers in the oil, gas, chemical, mining, logistics, and industrial sectors. The company, which currently functions as an independent division of Ambipar Group, has operations in 16 countries, with plans to expand its presence in the US.
Ambipar Response is expected to generate net revenue of $325M in 2022, with EBIDTA of $82M, according to the companies.
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SPAC HPX to merge with Brazilian environmental services provider Ambipar Response