New York float worth £1.2bn involving Michael Klein abandoned
The planned $1.6bn (£1.2bn) merger involving a Cheshire investment group founded by the brother of former Take That singer Jason Orange, that would see it float on the New York Stock Exchange, has collapsed.
The deal between Corpacq, which was founded by Simon Orange, and Churchill Capital Corp VII, a special purpose investment vehicle set up as a trust account by New York corporate financier Michael Klein, was first announced in August 2023.
It had originally been expected that the merger would be completed in February this year but was delayed in June to August.
However, newly-filed documents with the United States Securities and Exchange Commission have revealed that the proposed deal is now off.
Corpacq has more than 40 portfolio businesses including the likes of Cotton Traders, Aintree Plastics and Metcalfe Plant Hire.
As well as being the founder and chairman of Corpacq, Simon Orange is also the co-owner of Premiership rugby club Sale Sharks.
In a statement, Klein said: “While market conditions are not favorable today for the public listing of CorpAcq through our proposed merger, we continue to believe in the strong fundamentals and growth prospects of the company.
“We thank the Churchill and CorpAcq teams for their efforts and for providing this unique opportunity to our investors.”
Orange added: “I am very proud of the tremendous business that the CorpAcq team has built, and I am confident in the company’s future growth opportunities.
“We are appreciative of the partnership with Churchill and their support throughout the process.”
Speaking in August 2023 when the deal was first announced, Orange said: “Today is an exciting milestone in Corpacq’s history and validation of our team, our tremendous growth and our approach of partnering closely with and empowering portfolio companies to drive long-term performance. We are thrilled to partner with Churchill VII.
“With their team’s deep M&A and capital markets expertise, track record of value-added investing in companies as well as an extensive relationship network, we are confident that Churchill VII is the right partner to propel CorpAcq’s next phase of growth.
“As a public company, we believe Corpacq will be better positioned to accelerate organic growth, expand our acquisition pipeline deeper in the UK and deliver compounding returns to shareholders, all while staying true to our ethos of fostering autonomy at our portfolio companies and investing over a long time horizon.”