(Bloomberg) -- Footprint, a maker of plant-based fibers that's attempting to eliminate single-use plastics, is in talks to go public through a merger with Gores Holdings VII Inc., a blank check-firm, according to people with knowledge of the matter.
A transaction is set to value the combined entity at as much as $3 billion, one of the people said. Terms aren't finalized and it's possible talks fall apart.
Representatives for Footprint and Gores declined to comment.
Footprint, led by co-founders former Intel Corp. engineers Troy Swope and Yoke Chung makes compostable, biodegradable and recyclable products that it has said is “on par” with the cost and performance of plastic. Customers include Conagra Brands Inc., Beyond Meat Inc., Tyson Foods Inc., McDonald's Corp. and Sweetgreen, and the company has more than 2,400 issued and pending patent claims, its website shows. Footprint has said its efforts have “led to a redirection of 61 million pounds of plastic waste from the environment.”
Gores VII, led by billionaire Chairman Alec Gores and Chief Executive Officer Mark Stone, raised $550 million in a February initial public offering. Earlier Gores special purpose acquisition companies have merged with firms including Ardagh Metal Packaging SA and Matterport Inc.
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