Summary
- Vesper Healthcare Acquisition agrees to acquire HydraFacial in a deal valued at up to $1.1 billion.
- The experiential beauty health company is looking to build a platform of services for medical spas to grow the TAM in the health and beauty sector.
- The SPAC trades at 5x '22 sales targets and is one of the few SPACs with a deal still trading near $10.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Get started today »
After a week where a couple of high profile IPOs doubled before retail investors could purchase shares, the SPAC sector is becoming far more appealing. A recent SPAC deal by Vesper Healthcare Acquisition (VSPR) to acquire HydraFacial fits that bill. The SPAC trades near the recent $10 IPO price providing an interesting entry point for retail investors and access to a young growth story in the early stages unlike most IPOs these days.
Image Source: HydraFacial website
Attractive Transaction
Back on December 9, Vesper Healthcare Acquisition agreed to acquire HydraFacial for a valuation of $1.05 billion. The deal consists of $975 million payable at closing and another $75 million upon the completion of certain identified acquisitions after the SPAC deal closes.
The SPAC originally raised $460 million via selling 46 million shares at the IPO. In addition, each share included one-third of a warrant exercisable at $11.50 per share. In total, about 15 million warrants are outstanding that will raise nearly $175 million.
As with other SPAC deals, the company will close a committed PIPE investment from a strong group of institutional investors at $10 per share to raise $350 million in order to provide the additional cash for the deal. HydraFacial will end up with $100 million on the balance sheet and trades around an EV of $1.25 billion.
