Mercuria Investments US, Inc. completed the acquisition of Beyond6, Inc. from HC2 Holdings, Inc. and others for approximately $107 million.
January 14, 2021
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Mercuria Investments US, Inc. entered into a definitive agreement to acquire Beyond6, Inc. from HC2 Holdings, Inc. (NYSE:HCHC) and others for approximately $170 million on December 30, 2020. The purchase price includes $65 million in cash subject to customary closing adjustments. Equity financing has been obtained for the purpose of financing the cash portion of the purchase price on certain terms and conditions. In the event that Beyond6 terminates the agreement, a termination fee of $12.7 million in cash will be paid. The transaction is subject to the satisfaction or waiver of certain customary closing conditions, including regulatory approvals, Beyond6 stockholder approval, the waiting period under the Hart-Scott-Rodino antitrust law having expired. The transaction was unanimously approved by the Board of Directors of HC2. Also the transaction has been approved by the board of directors and stockholders of Beyond6. As of January 12, 2021, FTC granted early termination notice. The parties expect that the merger will close in the first quarter of 2021 but not earlier than January 22, 2021. HC2 intends to use the portion of the net proceeds of $65 million to reduce debt. Goldman Sachs & Co. LLC served as a financial advisor to Beyond6. Todd E. Lenson, Jordan M. Rosenbaum, Marissa J. Holob and Barry Herzog of Kramer Levin Naftalis & Frankel LLP served as a legal advisor to HC2. James Garrett, Todd Way, Shane Tucker, Sean Becker, Russell Oshman and Matt Dobbins of Vinson & Elkins LLP acted as a legal advisor to Mercuria Investments. Todd E. Lenson, Jordan M. Rosenbaum of Kramer Levin Naftalis & Frankel and Gregory A. Mountain of The West Firm acted as legal advisor to Beyond6.
Mercuria Investments US, Inc. completed the acquisition of Beyond6, Inc. from HC2 Holdings, Inc. (NYSE:HCHC) and others on January 15, 2021. Net proceeds received by HC2 at closing was approximately $70 million in cash, which HC2 intends to use to reduce existing 11.50% senior secured notes, repay the outstanding indebtedness under its revolving credit agreement, pay related fees and expenses, and for general corporate purposes.
Innovate Corp. is a diversified holding company. The Company has a portfolio of subsidiaries in a variety of operating segments. Its segments include Infrastructure (DBMG), Life Sciences (Pansend), and Spectrum. DBM Global Inc. (DBMG) is a fully integrated construction company offering both construction and professional services primarily through its core subsidiaries. It provides services, including design-assist, modularization, fabrication and erection of structural steel, heavy steel plate, trusses and girders, heavy equipment installation, as well as facility services for maintenance and shutdowns. DBMG manufactures pressure vessels, strainers, filters, and separators. Life Sciences segment is comprised of Pansend Life Sciences, LLC, which is focused on supporting healthcare and biotechnology product development. Spectrum segment is comprised of HC2 Broadcasting Holdings Inc. and its subsidiaries. It owns and operates broadcast television stations throughout the United States.