Grove Collaborative to merge with Virgin Group Acquisition Corp. II
Grove Collaborative, a leading sustainable consumer products company, is to merge with Virgin Group Acquisition Corp. II, a publicly-traded special purpose acquisition company (SPAC) sponsored by Virgin Group. The companies have entered into a definitive business combination agreement that will result in Grove Collaborative becoming a public company.
As the largest independent, home and personal care brand focused on health and sustainability, Grove Collaborative is fuelled by a mission to transform the consumer products industry into a force for human and environmental good. The Company is at the forefront of the direct-to-consumer and natural products trends and has emerged as a leader in the category, with over 1.5 million active customers through its direct platform and millions of units sold at physical retail.
The transaction implies a combined company pro forma enterprise value of approximately $1.5 billion and is expected to close in late Q1 or early Q2 2022. Upon closing of the transaction, the combined company will continue to operate under the Grove Collaborative name and will be listed on the NYSE under the new “GROV” ticker symbol.
The combined company will be led by Stuart Landesberg, Co-Founder and Chief Executive Officer of Grove Collaborative. “In going public, we sought a partner that shares our passion for using business to answer the urgent environmental crisis, and that accelerates our vision to make consumer products a positive force in human and environmental health,” he said.
“In that spirit, we are thrilled to partner with mission-driven disruptors Sir Richard Branson and VGII as we embark on this next chapter. Together we will create new opportunities to revolutionise the CPG industry to be a positive force for human and environmental health. The CPG category is ripe for disruption. As an industry, we can, should, and must be able to offer products that are high performing and good for the planet. Grove Collaborative can be a driving force for change, through our ongoing product innovation, retail partnerships and our ambitious goal to become 100% plastic free by 2025, ”
“I am inspired by Grove Collaborative’s vision to transform the availability and quality of planet-first products,” said Richard Branson, Virgin Group Founder. “Grove Collaborative is paving the way for people to have more access to healthy, sustainable goods for their homes and I am excited to see the company’s impact on customers’ health and wellbeing. There are huge growth opportunities ahead, and we are delighted to work alongside Stu and his team as Grove Collaborative continues to disrupt the industry and make a positive difference to people and the planet.”
Evan Lovell, Chief Investment Officer of Virgin Group, commented: “Grove Collaborative has a distinctive opportunity to capitalise on a growing sustainable products market ripe for disruption. Virgin Group sought to partner with an exceptional consumer products company, and our mission and platform offered the perfect opportunity for two incredible teams to come together. We are thrilled to partner with Grove Collaborative and their team and look forward to our collective future success as a publicly traded business.”
Earlier this year, the digitally native company announced its entrance into physical retail at Target stores nationwide and on Target.com, helping more shoppers to adopt a sustainable lifestyle by providing greater access to healthier products to consumers across the country, while quickly becoming the #1 repeat brand in the cleaning category.
In addition to its flagship brand, Grove Co., Grove Collaborative has built and launched several sustainable brands in the personal care, paper, and beauty categories such as the 100% plastic-free bar format body, hair and deodorant brand, Peach not Plastic. Grove Collaborative’s customers have avoided over 4.9 million pounds of plastic being used by choosing Grove Co. and Peach, not Plastic’s plastic-free and plastic-reducing products.
Grove Collaborative is leading the consumer products industry out of plastic. Already plastic neutral and carbon neutral certifiedⓇ, it aims to become 100% plastic-free by 2025. Beyond Plastic is Grove Collaborative’s comprehensive plan to address the plastic crisis and to help the Company meet its ambitious goal. Today, Grove Collaborative also has 100% carbon neutral shipping and facilities and is committed to net zero carbon emissions by 2030.
To find out more about the business combination agreement between Grove Collaborative and Virgin Group Acquisition Corp. II, head over to vgacquisition.com/vgac-ii/.