Essentium, Inc, Austin, Texas, USA, reports that it will become a public company following a definitive business combination agreement with Atlantic Coastal Acquisition Corporation. Upon completion of the transaction – expected to occur at the end of Q1 2022 – the combined company will retain the Essentium name and is expected to be traded on The Nasdaq Stock Market, LLC, under the ticker symbol ADTV.
Founded in 2013, Essentium manufactures and delivers industrial Additive Manufacturing machines, materials, software and services. The company has an extensive IP portfolio across polymer and metal systems, processes and materials, with more than 150 patents to date. It is developing a suite of metal AM systems designed to offer unique metallurgies and advanced microstructures for applications with demanding structural integrity.
Atlantic Coastal Acquisition Corp is a special purpose acquisition company, and following the merger the combined company is expected to have an implied pro forma enterprise value of $974 million, including $346 million in cash on the balance sheet, assuming no redemptions and net of transaction expenses. All proceeds are expected to primarily fund organic growth initiatives.
The transaction includes $345 million cash held in trust by Atlantic Coastal as well as a fully committed common stock PIPE of over $40 million anchored by strategic and institutional investors including BASF, Atalaya Capital Management LP and Apeiron Investment Group, the private investment firm of entrepreneur and investor Christian Angermayer.
“Essentium is transforming the future landscape of supply chains by delivering truly distributed, sustainable manufacturing and operating solutions within all contexts including the ability to operate successfully in contested logistics environments,” stated Blake Teipel, PhD, Chief Executive Officer of Essentium. “Today’s announcement represents a major milestone in our efforts to provide long-term, sustainable solutions for a new manufacturing paradigm that can meet these global challenges head-on. Essentium’s solution deploys regional, distributed production capabilities to enable supply chain transparency, and flexible inventory management at a highly competitive TCO, all while reducing waste and supporting a limited carbon footprint through on-site printing.”
Following the closing of the proposed transaction, Essentium will continue to be led by its existing management team including Dr Blake Teipel, Chief Operating Officer Lars Uffhausen, and Interim Chief Financial Officer Jonathan Bailiff, and by an experienced board of directors including Burt Jordan, president of Atlantic Coastal Acquisition Corp. and a former executive at Ford.
“We launched Atlantic Coastal with an [Environmental, Social and Governance]-centric focus and a mandate to partner with a company that will transform the nature of international commerce, and we believe that Essentium, with its potential to change the global supply chain, is exactly that partner,” commented Shahraab Ahmad, chairman and CEO of Atlantic Coastal. “Blake and his experienced team have developed a deep technology moat, a product ecosystem validated by the DoD, and a razor/razor-blade model that delivers significant recurring revenue, supporting gross margin expansion and highly attractive unit economics.”
Tony Eisenberg, Chief Strategy Officer of Atlantic Coastal, added, “We believe that following this transaction, Essentium will be extremely well-positioned for rapid growth as it further expands its ecosystem offerings, capitalises on its line-of-sight sales pipeline, and executes on its M&A strategy as it continues to advance Additive Manufacturing as a public company.”