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With backing from the Blackstone Group LP, Hicks Acquisition Co. I Inc. has closed the largest ever SPAC combination with an industrial company with a $3.2 billion merger with Graham Packaging Holdings Co.
Hicks Acquisition, a Dallas special purpose acquisition company headed by Thomas Hicks, co-founder private equity firm, Hicks, Muse, Tate & Furst, and the Blackstone Group announced the agreement to merge with Graham, a maker of plastic containers for products such as juice drinks, sports drinks, yogurt and smoothies, condiments, liquid laundry detergent and motor oil. The 36-year-old York, Pa., company had net sales of approximately $2.5 billion in 2007. The privately held Graham Packaging will go public through the transaction, with the current stockholders receiving $350 million of cash held in trust, 35.0 million common shares, and 2.8 million warrants upon completion of the transaction. After the deal closes, the combined company will be renamed Graham Packaging Co. and will apply for listing on the New York Stock Exchange. Blackstone will retain the largest ownership stake for at least two years. The deal gives SPAC watchers more reason to believe that there's a light at the end of the tunnel for special purpose acquisition companies. The industry, which has been moribund throughout 2008 after being red-hot last year, saw its first IPO in four months last week. And earlier this month, blank-check company Polaris Acquisition Corp. agreed to a nearly $700 million all-stock deal to merge with private equity-owned automotive telematics company Hughes Telematics Inc. The Deal.com will have full coverage of this deal throughout the day. - George White See press release See Dealscape post on SPAC IPO See Dealscape post on Hughes Telematics CategoriesPrivate capital video
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