Roth Capital Partners’ SPAC Acquires Plastics Recycler PureCycle Technologies

Roth CH Acquisition I Co. announced that it has acquired polypropylene (PP) recycling firm PureCycle Technologies in a deal that values PureCycle’s post-transaction equity at about $1.2 billion.

Under the deal, a new holding company named PureCycle Technologies Inc. will be created and listed on the Nasdaq exchange under the symbol ‘PCT.’

The deal includes an $835 million issuance of new stock to current PureCycle shareholders, $250 million in private investment in public equity (PIPE) financing led by a variety of investment firms and family offices, and $76.5 million in funding from a Roth CH trust account.

PureCycle has an exclusive license to commercialize a patented solvent-based purification recycling technology for PP recycling developed by Procter & Gamble.

“PureCycle’s Ultra-Pure Recycled Polypropylene (UPRP) has nearly identical properties and applicability for reuse as virgin polypropylene,” the company says.

PureCycle has offtake agreements with a number of firms, including L’Oreal, P&G, Milliken & Company, BMW iVentures, and Total.

PureCycle intends to build new recycling production facilities globally, with the goal of having 30 commercial lines operational by 2030 and 50 by 2035.

In addition to PureCycle’s first plant in Ironton, Ohio, the Company expects to announce its next location in Europe and to commence production in 2023 with a nameplate capacity of approximately 107 million pounds when fully operational.

Production from the Ironton, Europe, and cluster sites are expected to bring 1.2 billion pounds per year in recycled PP output in the next five years. The company is also aiming for $800 million in annual revenues by 2024.

“Our recycling process produces virgin-like resin that we believe is suitable for high-value, food-grade consumer products, and we believe we are well-positioned to meet the consumer demand for recycled content as well as global sustainability mandates,” says PureCycle CEO Mike Otworth. “The proceeds of this transaction are intended to provide us with the balance sheet strength to accelerate the global rollout of our proven technology addressing the immense global problem associated with polypropylene waste.”

Roth CH “searched for a business combination that would not only be a compelling growth company but could also benefit from the relationships and experience of our two growth investment banks,” says CEO Byron Roth.

The deal is expected to be completed in the first quarter of 2021.

Roth CH Acquisition I Co. is a special-purpose acquisition company (SPAC) backed by investment firms Roth Capital Partners and Craig-Hallum Capital Group.