AeroFarms goes public through merger with Spring Valley Acquisition

5 Apr 2021

Vertical farm company AeroFarms merged with the publicly traded special purpose acquisition company (SPAC), Spring Valley Acquisition in order to continue the expansion of the greens grower both in terms of production and distribution. The transaction will provide up to $357 million in gross proceeds to AeroFarms, including $317 million of unrestricted cash at close to fund future farm development and general corporate purposes.

"Our business is at an inflection point where we will scale up our proven operational framework and begin our expansion plans in earnest,” said David Rosenberg, Co-Founder and CEO of AeroFarms in a statement. Rosenberg will lead this newly-merged company that is valued at $1.2 billion.

AeroFarms goes public through merger with Spring Valley Acquisition
Courtesy of AeroFarms

In a statement, the company said that beyond farm development, it intends to use its new-found capital to expand its retail distribution and market penetration, construct additional farms, develop new farming technology and enter new product categories.

Vertical farming has become a hotbed for investors in recent years. Companies like AppHarvest, Revol Greens and BrightFarms have pursued investment for their indoor farming operations to much success. While most of these indoor farming operations have sought private investment, AppHarvest chose to seek its fortunes through a SPAC deal. When the company selected to go public last fall, its valuation hovered at $1 billion, and today, that figure has grown to exceed $1.7 billion.

AppHarvest is not an anomaly in the food and beverage space. SPAC deals have become popular for manufacturers looking for a means to raise cash quickly. However, it is worth noting that while many of these companies have successfully snagged investment and scaled quickly, they are not necessarily operating profitably. Investors are largely putting their money in a vision of the future that is popular with consumers in hopes that the initial infusion of financial capital will propel these businesses to profitable growth.

AeroFarms appears to be heading in the right direction to align with what shoppers want. The company, which was founded in 2004, has been a certified B Corporation since 2017. Not only does it hold a certification that holds significant weight with consumers looking to support sustainable businesses, but AeroFarms says it achieves up to 390 times greater productivity per square foot annually versus traditional field farming while using up to 95% less water and zero pesticides.

According to the greens growing company, the market for its products stands at $1.9 trillion, and AeroFarms has grown over 550 varieties of produce to serve that market. With a large portfolio of products and its established Dream Greens brand, the company said it has a “very bright” future ahead as it looks to satisfy the demand for sustainably grown produce.

“Their team has been selling commercial product with major retailers, building a trusted brand that is performing well, and developing influential partnerships that will enhance their ability to scale this business quickly,” said Chris Sorrells, CEO of Spring Valley in a statement.

Related news

DSM acquires Amyris’ bio-based flavors and fragrances business

DSM acquires Amyris’ bio-based flavors and fragrances business

9 Apr 2021

Netherlands-based Royal DSM acquired the flavor and fragrance bio-based intermediates business of California-based Amyris in order to extend the Dutch corporation’s presence in bio-based flavor and fragrance ingredients. The transaction was completed o...

Read more 
‘Bread as good as veg’: Modern Baker makes bread better with science-based Superloaf

‘Bread as good as veg’: Modern Baker makes bread better with science-based Superloaf

8 Apr 2021

Packing in 12 high-fibre, plant-based ingredients and no additives, Modern Baker’s Superloaf claims to be as healthy as eating vegetables, and has won the praise of ‘gut guru’, Dr Tim Spector.

Read more 
Danone Manifesto Ventures makes first UK-based investment

Danone Manifesto Ventures makes first UK-based investment

8 Apr 2021

Danone’s VC arm, Danone Manifesto Ventures (DMV) made its first investment in a UK-based business with its commitment to a £2.5m funding round for the healthy drinks brand Moju. Moju said the French Dairy giant’s minority investment in the company will...

Read more 
Topo Chico finally debuts its hard seltzer

Topo Chico finally debuts its hard seltzer

1 Apr 2021

Molson Coors Beverage Company, which is exclusively manufacturing Topo Chico Hard Seltzer through a brand authorization agreement with Coca-Cola, finally released the concept onto shelves on March 29 after announcing the development of the brand in Jul...

Read more 
Chobani enters into pilot program with PepsiCo

Chobani enters into pilot program with PepsiCo

30 Mar 2021

Greek yogurt maker Chobani recently entered into a distribution partnership with PepsiCo to sell its new yogurt drinks at convenience stores, colleges and universities in the northeastern part of the U.S. In the original report on this news, Bloomberg ...

Read more 
Unilever and Nestlé petition to phase out caged hens in Europe

Unilever and Nestlé petition to phase out caged hens in Europe

29 Mar 2021

In a letter to the European Commission, major food titans called on the government to end the practice of raising hens in cages in the European agricultural sector. To accomplish this push, industry heavyweights Unilever and Nestlé partnered with the o...

Read more 
Alaska takes on 21 companies in a $1 billion price-fixing lawsuit

Alaska takes on 21 companies in a $1 billion price-fixing lawsuit

26 Mar 2021

The state of Alaska filed a lawsuit a $1.05 billion lawsuit against 21 chicken producers, accusing these companies of price fixing. In its filing, the State of Alaska is asking for $50 million in damage and restitution payments from each defendant.

Read more 
Swiss cultivated meat start-up raises $2.2m; aims for 2022 product launch

Swiss cultivated meat start-up raises $2.2m; aims for 2022 product launch

26 Mar 2021

This month, Swiss cell-cultured meat start-up Mirai Foods announced it raised US$2.2 million in a second seed round, bringing the total seed financing raised in 2021 to $4.5m.

Read more 
Givaudan launches new digital sensory insights tool

Givaudan launches new digital sensory insights tool

25 Mar 2021

Givaudan Taste & Wellbeing has introduced a new digital tool which uses AI and aroma technology to enhance its understanding of consumer preferences.

Read more 
Danone revamps itself, ousting CEO and adding to its portfolio

Danone revamps itself, ousting CEO and adding to its portfolio

24 Mar 2021

As Danone continues to face pressure both from industry competition as well as activist investors, the company has decided to separate its chairman and CEO roles, which are currently held by Emmanuel Faber. Additionally, Danone is searching for a new C...

Read more