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Private equity firm's consumer SPAC Authentic Equity Acquisition files for a $200 million IPO

December 22, 2020

Authentic Equity Acquisition, a blank check company formed by Authentic Equity targeting a North American consumer business, filed on Tuesday with the SEC to raise up to $200 million in an initial public offering.

The Rye, NY-based company plans to raise $200 million by offering 20 million units at $10. Each unit consists of one share of common stock and one-half of a warrant, exercisable at $11.50. The company may raise additional funds at the closing of an acquisition pursuant to a forward purchase agreement with General Electric Pension. Under the terms of the agreement, in exchange for $824,500 paid concurrently with the closing of the offering, GEPT will have the right to purchase up to the lesser of $50 million worth of units and 19.99% of the pro forma equity outstanding at the closing of the initial business combination. At the proposed deal size, Authentic Equity Acquisition would command a market value of $263 million.

The company is led by CEO and Chairman David Hooper, co-founder and Partner at consumer-focused private equity firm Authentic Equity and co-founder and former Head of Private Equity at Centerview Capital. He is joined by CFO and Director Todd Khoury, co-founder and Partner at Authentic Equity and founder of Andion Capital, and COO and Director Thomas Flocco, an Operating Partner at Authentic Equity and former COO of Utz Quality Foods (UTZ).

The company plans to target North American businesses in the consumer sector, focusing on subcategories including packaged and frozen foods, beverages, beer, wine and spirits, snacks, household products, pet products, consumer and marketing services and personal care products, including health and beauty and over-the-counter products.

Authentic Equity Acquisition was founded in 2020 and plans to list on the Nasdaq under the symbol AEACU. The company filed confidentially on October 13, 2020. Jefferies and BMO Capital Markets are the joint bookrunners on the deal.