Gores Group third SPAC set to price, targets $375 mln

A third blank-check company from Gores Group is expected to price its initial public offering Thursday.

Gores Holdings III Inc is looking to raise $375 million. The blank-check company is selling 37.5 million units at $10 each via bookrunner Deutsche Bank, according to an SEC filing.

The underwriter has the right to buy an additional 5.625 million units, the filing said. Gores Holdings III is expected to trade Friday under the ticker GRSHU on the Nasdaq.

Special purpose acquisition vehicles typically have a deadline to buy a company or they must return the funds raised. Gores Holdings III has 24 months to complete a business combination with another company.

Alec Gores, chairman and CEO of Gores Group, is listed as chairman of the SPAC. Mark Stone, a senior managing director of Gores Group, is CEO of Gores Holdings III. Andrew McBride, chief financial officer of Gores Holdings III, is a director, finance and tax, at Gores Group.

Gores Group has used blank-check companies with success. The firm’s first SPAC, Gores Holdings I, raised $375 million in 2016. Gores used the first SPAC to buy Hostess Brands along with capital from Gores and other investors in a $2.5 billion transaction, Buyouts reported.

The firm used its second SPAC to buy Verra Mobility. Gores Holdings II raised $400 million in January 2017. In June, the second blank-check company agreed to acquire Verra, a provider of smart transportation hardware, software and services, from Platinum Equity.

Gores Group, Los Angeles, typically invests in challenging situations.

It has not raised a fund since 2011 when its third pool collected $2 billion. Gores is not planning to raise a new institutional fund in the immediate future, Buyouts reported in February.

Instead, the firm has opted to invest the personal capital of Alec Gores and select outside investors, on a deal-by-deal basis. The PE firm will also continue to raise SPACs to acquire specific companies, the story said.

Executives for Gores declined comment.

Action Item: Contact Alec Gores at +1 310-209-3010