Benzinga | Aug 25, 2021 08:37AM EDT

Ace Global Business Acquisition Limited Announces Merger Agreement With DDC Enterprise Limited; Deal Gives DDC Base Enterprise Value Of $300M

* DDC is a digital publisher and merchandiser company running the brand DayDayCook, which is currently one of the leading content-driven lifestyle brands for young food lovers in Asian markets.

* DDC has launched ready-to-heat (RTH), ready-to-cook (RTC) and plant-based food products, which bring convenience and quality food products to the young food lovers. The Group builds brand recognition through culinary and lifestyle content across major social media and e-commerce platforms to promote its products, aggregating over 3 billion video views and over 10 million orders worldwide.

* According to Guohai Securities research, the RTC market size is expected to grow at a CAGR of 20% to reach US$150 billion in 2027, driven by structural changes in consumer behavior and preferences. DDC is well positioned to capture this opportunity riding on its omni-channel sales strategy spanning across traditional e-commerce, social-commerce, and offline retailer networks. The company also has strategic partnerships with key manufacturers to build a strong yet nimble supply chain.

* DDC also launched plant-based products to address the rising demand for healthier meal choices amongst consumers as well as to promote a quality lifestyle to the company's customer base. Increasing contribution from plant-based products both in terms of revenue and number of stocking-keeping units is a core strategy for DDC. This month, DDC announced a strategic investment with Proterra Investment Partners further strengthening the company's commitment in future plant-based business developments.

* The deal gives DDC a base enterprise value of US$300 million and Ace and DDC will aim to raise a private investment in public equity (PIPE) of approximately US$30-40 million. Assuming no shareholder redemption, the combined company will receive US$46.9 million cash from Ace's trust account.