Blank-Check Company Backed By Goldman Sachs Files for IPO
May 18 2018 - 6:45PM
Dow Jones News
By Maria Armental
GS Acquisition Holdings Corp., a blank-check company backed by
Goldman Sachs Group Inc., is trying to raise some $600 million in
an initial public offering.
Blank-check companies, also known as special purpose acquisition
companies, or SPACs, are listed companies that raise money from
investors for acquisitions and have become a popular tool among
well-known executives, particularly in the oil patch.
In this case, GS Acquisition has tapped David M. Cote, who led
the turnaround of industrial conglomerate Honeywell International
Inc. as chief executive. GS Acquisition will focus on seeking deals
in the industrial sector, according to a Friday securities
filing.
"We believe Mr. Cote's industry experience and operating
capabilities, paired with Goldman Sachs' unique sourcing
infrastructure and experience investing in public and private
markets, will make us a partner of choice for potential business
combination targets," the company said in the filing. It also said
it has yet to have substantive discussions with any acquisition
target.
Mr. Cote had served as a director at the Federal Reserve Bank of
New York and was involved in the search for the bank's new
president, but he unexpectedly stepped down from the post in March.
The New York Fed said at the time that Mr. Cote was leaving because
he was considering new business opportunities that could affect his
eligibility to hold the post.
The formation of GS Acquisition serves as the latest example of
activity in the SPAC space. The Wall Street Journal reported in
December there had been almost $14 billion worth of new listed
shares in blank-check companies, a record, outstripping 2007's
$12.3 billion global issuance.
Separately, LF Capital Acquisition Corp., another blank-check
company, also filed for an initial public offering on Friday. LF
Capital Acquisition, led by former BNP Paribas SA Chairman Baudouin
Prot, said it was seeking to raise more than $100 million to target
a "business in the commercial banking and financial technology
industries."
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
May 18, 2018 18:30 ET (22:30 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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