(Bloomberg) -- PureCycle Technologies LLC, a polypropylene recycling company, is in talks to go public through a merger with Roth CH Acquisition I Co., according to people with knowledge of the matter.
Newport Beach, California-based Roth, a special purpose acquisition company, is in discussions with prospective investors to raise about $200 million for a transaction, said some of the people, who requested anonymity because the talks are private. The merged entity would have a market value of $1.1 billion and an enterprise value of roughly $825 million, they said. As with all deals that aren't yet finalized, it's possible talks could collapse.
PureCycle and Roth representatives didn't immediately respond to requests for comment.
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This isn't the first time that PureCycle has been near a SPAC merger. In April, Graf Industrial Corp. said it was negotiating with PureCycle. Graf later struck a deal with Velodyne Lidar Inc., a maker of sensors used in self-driving vehicles.
PureCycle, led by Chief Executive Officer Mike Otworth, this month said it had issued bonds to raise $250 million that would fund the construction of its first plant in Ironton, Ohio. That plant is expected to produce more than 105 million pounds of ultra-pure recycled polypropylene a year, it said.
Roth is led by Chairman and CEO Byron Roth and co-presidents Aaron Gurewitz and Rick Hartfiel. The vehicle raised $76.5 million in a May initial public offering and said at the time it would seek a target in any sector, though with a focus on business services, consumer, health care, technology or wellness.
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