Packable, the US-based holding company for e-commerce services provider Pharmapacks that counts several corporates as investors, agreed to a reverse takeover yesterday with special purpose acquisition company Highland Transcend Partners I Corp.
The merger gives Packable a pro forma enterprise value of $1.55bn and it will acquire the listing on the New York Stock Exchange held by Highland Transcend.
The deal is being supported by $180m in private investment and public equity (PIPE) funding from investors including investment and financial services group Fidelity, Lugard Road Capital, Luxor Capital, Morningside and Park West Asset Management.
Packable provides third-party fulfilment, logistics, marketing and sales services on online marketplaces such as Amazon, Walmart, eBay and Google Shopping. The proceeds from the transaction will be used to expand across multiple markets and grow its business.
In November 2020, Pharmapacks received a $250m capital injection from private equity firm Carlyle Group at a valuation of $1.1bn, two months after it secured $40m in bridge financing from consumer goods manufacturer Reckitt Benckiser, property developer Emerson Group and investment bank Sawaya Capital Partners.
In July 2020, the company raised $150m from financial services firm JPMorgan Chase and GPI Capital in a round including an undisclosed credit facility from JPMorgan Chase.
Reckitt Benckiser led a $32.5m funding round for Pharmapack in 2018 that also featured healthcare services group McKesson’s corporate venturing unit, McKesson Ventures, as well as Emerson Group and packaging manufacturer Sealed Air.
Andrew Vagenas, chief executive of Packable, said: “This is an incredibly exciting time for our team, and we are thrilled to partner with Highland Transcend as we plan to enter our next chapter as a public company.
“While we have become a market leader in our industry, there is significant runway ahead of us in multiple avenues, from the continued proliferation of online marketplaces and geographic opportunities to our ability to invest in and grow digitally native brands, while providing new data and technology services, as well as marketing options for our brand partners.
“Given the breadth of opportunity ahead of us, we felt that this was the perfect time to unveil our new Packable branding, which reflects these new avenues for growth.”
