Global Consumer Acquisition Corp. ("GACQ") (NASDAQ:GACQ, GACQU, GACQW)))), a publicly-traded special purpose acquisition company, today announced that it has entered into business combination agreements with GP
Global Consumer Acquisition Corp. ("GACQ") (NASDAQ:GACQ, GACQU, GACQW))))), a publicly-traded special purpose acquisition company, today announced that it has entered into business combination agreements with GP Global Limited ("GP Global") and Luminex Home Decor & Fragrance Holding Corporation ("Luminex"), industry leaders in branded, licensed and private label solutions in the Air Care and Personal Care sectors. As part of the transactions, GP Global and Luminex will become wholly-owned subsidiaries of GACQ. In connection with the closing of the contemplated acquisitions of GP Global and Luminex, GACQ will change its name to Ascense Brands Inc. ("Ascense Brands") and will trade on NASDAQ under the new ticker symbol ‘SCNT'.
GACQ Co-Chairman & CEO Rohan Ajila said, "Our aim is to grow Ascense Brands' Air Care Platform into a billion-dollar business within the next three years, focusing on growing our brands and private label segments as well as leveraging value added acquisitions across the globe including Asia & India. We believe that Ascense Brands will become a market leader in the U.S. Air Care private label space with approximately 35% market share and strong growth potential." Ascense Brands intends to leverage Luminex's and GP Global's existing customer relationships to enter new product categories and will continue to capitalize on over 100-year-old brands, Colonial Candle and Candle-lite, in the brick and mortar and digital retail spaces. Additional national and international brands that will be within its portfolio at closing include Manly Indulgence, CL Co and PartyLite.
The combined entity has a forecasted 2022 revenue of approximately $553 million. At the closing of the acquisitions, Ascense Brands' brand portfolio, accounting for approximately 55% of its total revenues including well-established heritage brands, will make it one of the top three brand portfolios in Air Care in the multi-outlet channels in the United States.
The combined entity is expected to have a global distribution network covering 40+ major retailers and 50,000+ retail outlets, including 14 major U.S. retailers like Walmart, T.J. Maxx, Kroger, Dollar General and Rite Aid across 21,000+ retail outlets.
The transaction values the combined entity at an enterprise value of approximately $507.1 million, with up to approximately $117.5 million in net cash to fund growth.
"GP Global through its Indian subsidiary, Primacy Industries Ltd., brings with it significant market access and a cost competitive manufacturing base in India," said Mr. Ajila. Primacy Industries has recently received a $41 million investment from an affiliate of Bain in India.