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Mergers & Acquisitions

Forum Merger Corp. Gets Tattooed

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Published: June 22nd, 2020
Forum Merger Corp. II has an agreement to acquire plant-based food company Intella International, which will renamed Tattooed Chef.

Forum Merger II Corp. hopes ri make its mark with its acquisition of plant-based food company Tattooed Chef Inc.

The $482 million business combination between Forum and Intella International comes nine days after Florida-based Forum announced it was in deal talks. And just four days ago, Forum asked its shareholders to extend its deal deadline from June 10 to Sept. 3.

Intella International, which will be known as Tattooed Chef should the merger come to fruition, is the manufacturer of ready-to-cook bowls, zucchini spirals, riced cauliflower, acai and smoothie bowls, and cauliflower pizza crusts. The products are available in the frozen food aisles of supermarkets in Italy and the United States. The company sells products under the Tattooed Chef brand as well as a private label platform and is on freezers in Costco, Sam’s Club and Walmart.

The deal value is set at $482 million and based on 2.2 times Tattooed Chef’s estimated 2021 revenue of $222 million, or 15.6 times Tattooed Chef’s estimated 2021 adjusted EBITDA of $30.8 million.

Going forward, the current Tattooed management team of CEO Sam Galletti, COO and CFO Stephanie Dieckmann and Sarah Galletti, the creator of the Tattooed Chef brand, the company’s creative director and Sam’s daughter. The company plans to have Dieckmann take over as COO only and hire a new CFO.

In the statement about the definitive agreement, neither company included details about the composition of the board of directors.

Forum currently has $207 million in cash held in trust, and Tattooed investors will receive $75 million in cash. Those same investors will roll over 80% of their equity which works out to 60% of the newly public company. The deal is expected to close in the third quarter.

Forum went public in August 2018 with Jeffries LLC and EarlyBirdCapital Inc. underwriting the $200 million IPO.

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