AeroFarms to go Public in $1.2bn SPAC Merger
Updated: Apr 5, 2021
Vertical farmers AeroFarms are to go public via a merger with self-proclaimed sustainable SPAC “Spring Valley Acquisition Corporation” — formed by Pearl Energy Investment Management — at a $1.2bn valuation.
This is set to raise $317mn in unrestricted cash for future R&D as well as “general corporate purposes”.
By operating vertical farms, AeroFarms have streamlined the farming process by developing proprietary technologies not usually seen in the agricultural industry. Through extensive R&D and collaborative efforts with Dell Technologies, AeroFarms have developed a one-of-a-kind, data-driven approach to farming, resulting in consistent crop yields all year round. However, their competitive edge comes from their ability to grow large yields in urban areas, therefore lowering emissions released from transporting crops whilst also being able to provide produce to customers faster than their traditional farming competitors.
As seen below, their vertical, shelf-like farming system maximises space allowing AeroFarms to grow larger yields, boosting their overall profitability.
Their approach is proven to work, too, as they operate with zero pesticides and use 95% less water than the traditional farm. This has in part been due to their data-driven approach, granting AeroFarms a 390 times greater productivity per square foot versus traditional farms, showcasing the benefits of using data-driven insights to make decisions.
(Credit: Grandview Research)
Furthermore, Grandview Research project a strong positive sentiment within the vertical farming market evident in its expected 25.7% CAGR from 2020 to 2027. With a growing market size and leading market position, AeroFarms have positioned themselves well, which should translate into a strong merger with Spring Valley Acquisition Corporation.