12.08.21
Fast-growing sustainable products company Grove Collaborative and Virgin Group Acquisition Corp. II (VGII), a publicly-traded special purpose acquisition company sponsored by Virgin Group, have entered into a definitive agreement that will result in Grove becoming a public company.
Upon closing of the transaction, the combined company operate under the Grove name and will be listed on the NYSE under the new “GROV” ticker symbol.
Stuart Landesberg, co-founder and CEO of Grove Collaborative, will lead the new company.
“In going public, we sought a partner that shares our passion for using business to answer the urgent environmental crisis, and that accelerates our vision to make consumer products a positive force in human and environmental health. In that spirit, we are thrilled to partner with mission-driven disruptors Sir Richard Branson and VGII as we embark on this next chapter. Together we will create new opportunities to revolutionize the CPG industry,” said Landesberg.
Grove has more than 1.5 million active customers through its direct platform and millions of units of products sold at physical retail. Earlier this year it entered Target stores nationwide and on Target.com.
Grove’s revenue for 2021 is estimated to be $385 million. The company was founded in 2012.
The company reported 54% revenue CAGR expected from 2018-2021 and projected growth to more $600 million in 2024, according to today’s announcement.
Grove completed a $125 million funding round one year ago. It expanded into beauty in 2020 as well.
Grove was also honored by the EPA’s Safer Choice program in 2020. You can read more about what Landesberg said at the time in this Happi exclusive.
“I am inspired by Grove’s vision to transform the availability and quality of planet-first products” noted Sir Richard Branson, Virgin Group founder, in a statement,. “Grove is paving the way for people to have more access to healthy, sustainable goods for their homes and I am excited to see the company’s impact on customers’ health and wellbeing. There are huge growth opportunities ahead, and we are delighted to work alongside Stu and his team as Grove continues to disrupt the industry and make a positive difference to people and the planet.”
The business combination includes an implied combined company pro forma enterprise valuation for Grove of $1.5 billion. The transaction will provide up to $435 million in net proceeds to the company, including an $87 million fully committed common stock PIPE at $10.00 per share from an affiliate of the sponsor of VGII and new and existing Grove investors, including Lone Pine Capital, Sculptor Capital Management, General Atlantic and Paul Polman, and $348 million in proceeds from VGII’s trust account net of estimated transaction expenses (and subject to reduction based upon the exercise of any redemption rights by VGII’s public shareholders in connection with the transaction).
The Boards of Directors of Grove and VGII have both approved the transaction.
The transaction will require the approval of the shareholders of both Grove and VGII, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals.
The transaction is expected to close in late Q1 or early Q2 2022.
Grove says 100% of Grove’s shareholders will roll their equity holdings into the new public company.
Grove expects to use the proceeds from the transaction for working capital and general corporate purposes, in addition to covering transaction-related costs.
Upon closing of the transaction, the combined company operate under the Grove name and will be listed on the NYSE under the new “GROV” ticker symbol.
Stuart Landesberg, co-founder and CEO of Grove Collaborative, will lead the new company.
“In going public, we sought a partner that shares our passion for using business to answer the urgent environmental crisis, and that accelerates our vision to make consumer products a positive force in human and environmental health. In that spirit, we are thrilled to partner with mission-driven disruptors Sir Richard Branson and VGII as we embark on this next chapter. Together we will create new opportunities to revolutionize the CPG industry,” said Landesberg.
Grove has more than 1.5 million active customers through its direct platform and millions of units of products sold at physical retail. Earlier this year it entered Target stores nationwide and on Target.com.
Grove’s revenue for 2021 is estimated to be $385 million. The company was founded in 2012.
The company reported 54% revenue CAGR expected from 2018-2021 and projected growth to more $600 million in 2024, according to today’s announcement.
Grove completed a $125 million funding round one year ago. It expanded into beauty in 2020 as well.
Grove was also honored by the EPA’s Safer Choice program in 2020. You can read more about what Landesberg said at the time in this Happi exclusive.
“I am inspired by Grove’s vision to transform the availability and quality of planet-first products” noted Sir Richard Branson, Virgin Group founder, in a statement,. “Grove is paving the way for people to have more access to healthy, sustainable goods for their homes and I am excited to see the company’s impact on customers’ health and wellbeing. There are huge growth opportunities ahead, and we are delighted to work alongside Stu and his team as Grove continues to disrupt the industry and make a positive difference to people and the planet.”
The business combination includes an implied combined company pro forma enterprise valuation for Grove of $1.5 billion. The transaction will provide up to $435 million in net proceeds to the company, including an $87 million fully committed common stock PIPE at $10.00 per share from an affiliate of the sponsor of VGII and new and existing Grove investors, including Lone Pine Capital, Sculptor Capital Management, General Atlantic and Paul Polman, and $348 million in proceeds from VGII’s trust account net of estimated transaction expenses (and subject to reduction based upon the exercise of any redemption rights by VGII’s public shareholders in connection with the transaction).
The Boards of Directors of Grove and VGII have both approved the transaction.
The transaction will require the approval of the shareholders of both Grove and VGII, and is subject to other customary closing conditions, including the receipt of certain regulatory approvals.
The transaction is expected to close in late Q1 or early Q2 2022.
Grove says 100% of Grove’s shareholders will roll their equity holdings into the new public company.
Grove expects to use the proceeds from the transaction for working capital and general corporate purposes, in addition to covering transaction-related costs.