By Nathan Rubbelke, St. Louis Business Journal | September 30, 2021
St. Louis-based agtech stalwart Benson Hill has closed its deal to become a public company.
Benson Hill said Thursday it has completed its business combination with special purpose acquisition company (SPAC) Star Peak Corp II. The merger was approved by shareholders during a meeting Tuesday.
With the deal closed, Star Peak changed its name to Benson Hill Inc., and the company's shares will begin trading Thursday on the New York Stock Exchange with the ticker “BHIL.”
Benson Hill said the transaction provides about $319 million in gross proceeds to the company, including $94 million of cash from Star Peak's former trust account and $225 million of cash from an oversubscribed and fully committed common stock private investment in public equity (PIPE) deal.
Founded in 2012, Benson Hill, which describes itself as a "food tech company," has developed its CropOS technology that uses data science, artificial intelligence and machine learning to help improve crop varieties with better accuracy, nutritional value and sustainability than traditional breeding methods.
"Completing the business combination with Star Peak is a critical milestone on our journey to leverage our CropOS technology platform and our integrated business model to build a healthier and climate resilient food system," Matt Crisp, CEO of Benson Hill, said Thursday in a statement. "I am proud of the work accomplished by our great team at Benson Hill and the unwavering commitment from our investors and other stakeholders across the food value chain."
Crisp added that the company is "ready to begin the next phase of our growth with an expanded shareholder base."
"Since announcing this transaction, we have continued to build momentum and are taking bold and innovative actions to be the 'picks and shovels' of the rapidly growing plant-based food revolution," Crisp said. "This event provides Benson Hill with more resources to deliver on our acceleration plan to shape the future of food with more sustainable, nutritious and affordable food choices for consumers."
Evanston, Illinois-based Star Peak and Benson Hill in May announced their $2 billion deal, which they said would value Benson Hill at about $1.35 billion. SPACs are created with the intent of raising capital through an initial public offering, then using the proceeds to acquire a private company and take it public. They're often referred to as "blank check companies" because investors fund them often before the acquisition target is known.
"We are excited to complete this business combination with Benson Hill, a category-defining food-tech company that's the first of its kind to go public," Mike Morgan, chairman of Star Peak, stated Thursday. "With its CropOS food innovation engine, well-capitalized balance sheet and pure-play ESG investment characteristics, Benson Hill is ideally positioned for rapid growth as it powers the plant-based food revolution and plays a near-term foundational role in meeting the fast-growing demand for plant-based meat alternatives. We look forward to our continued partnership with Matt and the exceptional Benson Hill team to drive significant long-term value for all stakeholders."
Benson Hill’s decision to go public marks a victory for several St. Louis investors who have backed the company since its launch. Local investors in the company have included BioGenerator, Missouri Technology Corp., iSelect Fund, Lewis & Clark Ventures, Cultivation Capital, St. Louis Arch Angels and Prolog Ventures.
In August, Benson Hill reported its most recent financial results, saying it had $39.7 million in revenue for the quarter ended June 30. The company’s revenue was up 28% year over year and included $22.7 million in revenue for its ingredients division, which targets the plant-based foods sector, and $16.9 million for its fresh segment, which focuses on commercializing healthier fresh produce.
Benson Hill is the second high-profile St. Louis startup to go public this month. Nerdy Inc., the parent company of edtech firm Varsity Tutors, on Sept. 21 trading on the New York Stock Exchange. Nerdy’s entrance to the public market was the result of its SPAC deal with TPG Pace Tech Opportunities.
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