MIAMI – Oct. 11, 2021 – Global law firm Greenberg Traurig, P.A. advised Procaps Group, a Colombia-based healthcare and pharmaceutical company, in its business combination with Union Acquisition Corp. II, a Special Purpose Acquisition Company (SPAC). The shares of the newly combined company began trading on the NASDAQ with ticker symbol (PROC) on September 30.
The transaction valued Procaps at approximately $1.1 billion with gross cash proceeds of approximately $160 million, including an upsized private investment in public equity (“PIPE”) of $100 million committed by institutional investors. Key PIPE investors included a broad group of Latin American and healthcare investors
“This transaction is the latest indication of the strong interest among investors for opportunities in Latin America. This is a significant deal for this market since it’s the first Latin America-focused SPAC with a fully oversubscribed PIPE. The funds will enhance Procaps ability to expand its share of the pharmaceutical market in Latin America,” said Antonio Peña, a shareholder in the Corporate, and Latin America Practices of Greenberg Traurig’s Miami office.
“A SPAC business combination is a convenient vehicle for established Latin American companies to tap the capital markets because it sets valuation upfront and removes much of last-minute price volatility often involved in taking a company public through a traditional IPO,” added Peña. “Greenberg Traurig is uniquely positioned to help Latin American companies and investors interested in exploring this option because of our long-standing Latin American practice and two decades of experience doing SPAC transactions.”
The proceeds are expected to fund Procaps’ organic growth through capacity expansion, plant improvements, working capital investments, e-Health platform improvements and R&D expenses, as well as inorganic growth via accretive acquisitions. The company currently operates in 13 countries and operates the first FDA-approved pharmaceutical plant in South America for selling Rx products into the U.S.
“Successfully guiding Procaps through a large-scale transaction such as this business combination has put the talent and reach of Greenberg Traurig’s global network on display as we worked across the Americas to complete it,” said Alan Annex, co-chair of Greenberg Traurig’s Global Corporate Practice. “Getting to the finish line required a skilled team of attorneys who have decades of experience doing these kinds of transactions and can navigate U.S. regulatory and exchange listing requirements, while also managing the cross-border needs for our client who is based in Barranquilla.”
In the last 16 months, in addition to this transaction, Greenberg Traurig has advised several Latin American SPAC transactions including two SPAC initial public offerings for DD3 Capital Partners, the business combination agreement between DD3 Acquisition Corp. II and Codere Online, an online gambling company that operates in Spain and Latin America, and the mergers of DD3 with Betterware de Mexico S.A., a Mexican company, and Schultz Special Purpose Acquisition Corp. with Clever Leaves, a company with operations in Colombia.
In addition to Peña and Annex, the Greenberg Traurig deal team included Corporate Practice Shareholder Flora R. Perez, Of Counsel Arnaldo C. Rego, Jr., and Associates Ricardo Crispim Leite, Valentín I. Arenas, Douglas K. Aguililla, and Pamela Garcia de Presno; Tax Practice Shareholders Frank Cordero, Robert D. Simon, Leanna Reagan, and Associate James M. Maynor, Jr.; Intellectual Property & Technology Shareholder Manuel R. Valcarcel IV; Antitrust Litigation & Competition Regulation Practice Shareholder Stephen M. Pepper; Insurance Practice Shareholder Joel Max Eads; and Data, Privacy & Cybersecurity Chair Gretchen A. Ramos.
About Greenberg Traurig’s Corporate Practice: Greenberg Traurig’s Corporate Practice comprises more than 450 lawyers in the United States, Europe, Asia, the Middle East and Latin America who regularly advise public and privately held companies, entrepreneurs and investment funds on global mergers and acquisitions, corporate restructurings, private equity and venture capital, underwritten and syndicated offerings, commercial finance and syndicated lending, cross-border transactions, and general corporate matters. The group’s industry experience includes transactions in a wide range of fields, from the pharmaceutical, medical devices, and life sciences fields, to representations involving clients in the aviation, banking, consumer products, energy, food and beverage, health care, manufacturing, media, technology, and telecommunications sectors.
About Greenberg Traurig: Greenberg Traurig, LLP (GT) has approximately 2300 attorneys in 40 locations in the United States, Latin America, Europe, Asia, and the Middle East. GT has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360 400 and among the Top 20 on the Am Law Global 100. The firm is net carbon neutral with respect to its office energy usage and Mansfield Rule 4.0 Plus Certified. Web: http://www.gtlaw.com