Benson Hill to go public by merging with SPAC, Star Peak Corp II
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10 May 2021 --- US plant-tech company, Benson Hill, is going public by merging with a special-purpose acquisition company (SPAC), Star Peak Corp II. The move may see the agri-tech firm valued around US$2 billion.
Private companies can turn to SPACs to bypass the traditional IPO process and gain a public listing.
Benson Hill is a food tech company unlocking the natural genetic diversity of plants with its cutting-edge food innovation engine, CropOS.
Its key strategy is to bring down costs of plant-based food, which is seen as one of the key challenges in the sector right now and is often cited as a barrier to scale-up and commercialization.
Agri-food tech & optimizing plant growth
At the end of last year, Benson Hill revealed that it had bred a variety of soybeans that contain higher protein and oleic acid.
The crop improvement company leverages its Cloud Biology platform, CropOS, like a “GPS” for plant scientists and breeders. The system combines data, machine learning and AI techniques with biological sciences to keep pace with the growing appetite for high-protein soybeans and other plant-based ingredients.
The proprietary platform accelerates breeding by enabling greater precision and fewer breeding cycles.
At the end of last year, Benson Hill revealed that it had bred a variety of soybeans that contain higher protein and oleic acid.
As such, Benson Hill can develop crops such as soybeans and yellow peas that mature faster and have a higher protein content – a characteristic in high demand for food products.
IPO boom for plant-based alternatives
Manufacturers are constantly seeking new plant-based alternative proteins to feed the world’s ballooning population and meet the expected increasing demands in this plant-based space.
Transparency, sustainability and low environmental impact are key concerns for consumers who are much more aware of what is in their food, where it comes from, and how it arrived on their plate.
This means more sustainable and cost-efficient plant-growing methods are needed as the demand for plant crops spikes for future food.
In line with this trend, other prominent players in the plant-based space have moved to go public recently.
Oatly wants a New York listing to tap into the IPO boom and the rising trend for plant-based alternatives to animal products. This followed the company raising US$200 million in funding, which saw Oprah Winfrey, Jay Z and Natalie Portman invest in the alt-milk brand.
The company follows in the footsteps of other plant-based companies that have gone public such as alternative meat company Beyond Meat, which had its IPO in 2019, and Laird Superfood, which listed on the NYSE last year.
Meanwhile, Greek yogurt giant Chobani is reportedly considering going public this year, as is plant-based egg maker and cell-based meat developer Eat Just.
By Gaynor Selby
