Li-Cycle, a Canada-based lithium-ion battery resource recovery company, has agreed to merge with Peridot Acquisition in a deal that values the combined company at $1.67bn.
Peridot Acquisition is a special purpose acquisition company sponsored by US-based private equity firm Carnelian Energy Capital.
The deal will enable Li-Cycle to become a public company with a listing on the New York Stock Exchange (NYSE) under the symbol “LICY”.
Li-Cycle’s co-founder, president, and CEO Ajay Kochhar will lead the combined company.
The company is focused on the secondary supply of critical battery metals by leveraging its Spoke & Hub Technologies.
Li-Cycle’s technology is said to use a combination of mechanical safe size reduction and hydrometallurgical resource recovery for the recycling of lithium-ion batteries.
Kochhar said: “Li-Cycle’s patented technology is proven in the North American market as the leading way to recycle lithium-ion batteries and re-use recovered materials to make new batteries in a truly circular and sustainable manner. The capital raised in this transaction will fully fund our planned global growth.
“We are excited to partner with the Peridot team and enter the public markets, deliver on our mission and create long-term value for our customers, employees and shareholders.”
The deal gives Li-Cycle a pre-money equity valuation of $975m.
It will result in gross proceeds of $615m to the combined company, assuming no redemption by the shareholders of Peridot Acquisition.
The proceeds include private investment in public equity (PIPE) of $315m at $10 per share. The PIPE investors include Neuberger Berman Funds, Franklin Templeton, Mubadala Capital, Carnelian Energy Capital, Moore Strategic Ventures, and Traxys.
Peridot Acquisition chairman and CEO Alan Levande said: “Li-Cycle is at the forefront of one of the most crucial and under-penetrated markets in clean technology that is growing in lock-step with the electrification of mobility.
“As the North American market leader, we believe Li-Cycle is a unique and compelling ESG investment opportunity for investors looking to participate in the global energy transition.”
The deal is subject to the approval of the shareholders of the merging firms, regulatory approvals, and other customary closing conditions. Following this, it is anticipated to close in Q2 2021.
