Hyzon goes public through merger valued at $2.7B

Hydrogen truck maker, Hyzon Motors, is set to go public after it announced a merger with Decarbonization Plus Acquisition Corporation (DPAC).

Hyzon’s definitive agreement with the special purpose acquisition company announced this week paves the way for it to become publicly listed.

DPAC is backed by private equity firm Riverstone Holdings.

Combined the two companies are valued at around $US2.7 billion.

Hyzon, headquartered in Rochester, New York, is a differentiated, pure-play, independent mobility company with an exclusive focus on hydrogen in the commercial vehicle market.

The merger is viewed as a necessary development in the goal of establishing a viable distribution network of storage and fueling stations.

Late last year the start-up, who is catalysing the adoption of hydrogen heavy vehicles, announced plans to have 10,000 trucks on European roads by 2030.

“We are excited to partner with DCRB at an important inflection point for our company, hydrogen and society,” said Craig Knight, Chief Executive Officer and Co-Founder of Hyzon.

“Deliveries of Hyzon fuel cell powered heavy trucks to customers in Europe and North America will occur this year, well ahead of our competitors, and our committed sales pipeline is proof that the world is truly recognizing the need to develop innovative solutions to mitigate climate change and accelerate efforts to move the world economy down the path to net-zero emissions.”

Knight, an industrial chemist by profession, is Australian and co-founded Hyzon with George Gu in 2003.

Gu, who serves as Chairman, said the business combination will enable Hyzon to expand deployments of its zero-emission hydrogen fuel cell powered heavy vehicles globally, and to
continue leading what he described as being the hydrogen transition.

“We are incredibly excited about the dynamic mobility category as municipalities and Fortune 100 companies are rapidly embracing hydrogen as the essential pathway to a net-zero economy,” he said in a statement.

“The number of countries cementing and then enhancing their national hydrogen strategies expands almost weekly, and we are extremely encouraged by both investor and public interest in the hydrogen economy.”

The transaction is anticipated to generate gross proceeds of up to approximately $US626 million of cash, assuming minimal redemptions by DCRB’s public stockholders, which will be used to fund operations and growth.

This includes a $400 million fully committed private placement of common stock in DCRB, anchored by institutional investors including funds and accounts managed by BlackRock,
the Federated Hermes Kaufmann Funds, Fidelity Management & Research Company LLC, Wellington Management and Riverstone Energy Limited.

The pro forma implied equity value of the combined company is $US2.7 billion at the $10 per share, assuming minimal redemptions by DCRB’s public stockholders.

The transaction has been unanimously approved by the boards of Hyzon and DCRB. Completion of the proposed transaction is subject to customary closing conditions, including the approval of DCRB’s stockholders, and is expected to occur in the second calendar quarter of 2021.

Hyzon’s leadership will remain intact, with Craig Knight continuing as Chief Executive Officer of the combined company, overseeing its strategic growth initiatives and expansion. Mr. Knight will work alongside Hyzon’s current executive team. The Board of Directors of the combined company will include
representation from Hyzon and DCRB.

As a differentiated, pure-play, hydrogen powered mobility company and an emerging leader in the trucking industry, Hyzon, according to Robert Tichio, Chairman of the Board of DCRB and a Partner at Riverstone Holdings LLC, is a perfect match for DCRB’s investment criteria and represents a further expansion of Riverstone’s 15-year franchise in low-carbon investments.

“When forming this investment vehicle our objective was clear: to identify a truly exceptional company that is decarbonizing the global economy, disrupting an established industry with the commercialization of innovative technologies, and is well aligned with ESG principles. We found that company in Hyzon.”

In other news, fuel and energy services supplier, Viva Energy, has entered a strategic alliance with HYZON Motors.