European Growth SPAC to Merge With ADS-TEC in $580 Million Deal

(Bloomberg) -- European Sustainable Growth Acquisition Corp. is buying Germany’s ADS-TEC Energy GmbH, which creates technology used for electric charging platforms, in a deal that will give the combined firm a market value of about $580 million.

The transaction with the special purpose acquisition company, or SPAC, includes a $156 million private investment in public equity, or PIPE, with investors such as APG and Invesco, as well as the owners of both ADS-TEC and the blank-check company. 

Chief Executive Officer Thomas Speidel’s family, which is the largest ADS-TEC shareholder, is retaining an ownership stake.

“In 2010, I realized there would be a huge transformation into an all electric world over the next decades,” Speidel, who will be CEO of the merged company, said in an interview. “ADS addresses all the decentralized technologies we will need for an electric world.”

ADS-TEC’s clients include utility companies, auto-equipment manufacturers and charge-point operators. The firm’s products quick-charge cars by tapping nearby power grids, offering faster charging than would otherwise be available.

Broadening Base

The company is broadening its customer base to include industrial, commercial and residential clients. It also plans to expand in Europe and the U.S., using the deal proceeds to reach new markets and develop its technology.

ADS-TEC Holding GmbH, owned by Speidel’s family and his family’s foundation, owns 61% of the business, while the rest is owned by Bosch Thermotechnik GmbH. Both entities are “substantially participating” in the PIPE financing, according to a statement.

The European Sustainable Growth SPAC raised about $144 million in a U.S. initial public offering in January, near the peak of the past year’s record-breaking run of listings by blank-check companies. The firm specified that it would seek Europe-based merger targets that address consumer preferences for lifestyles driven by sustainability.

Well Positioned

Lars Thunell, the SPAC’s chairman, said ADS-TEC stood out.

“As the world searches for solutions that can deliver net zero emissions, Thomas and his team have differentiated ADS-TEC Energy from the competition,” Thunell said in a statement. “ADS-TEC Energy is exceptionally well positioned to become a leader in electric vehicle and mobile charging infrastructure.” 

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