Siddhi Capital Team Files for SPAC, Seeks a Better-For-You Brand
Having already made the jump from operational consulting to investing, the principals behind Siddhi Capital this week filed with the United States Securities and Exchange Commission (SEC) to launch a proposed special purpose acquisition company (SPAC).
With plans to trade on the New York Stock Exchange (NYSE), Siddhi Acquisition Corp. will seek to raise up to $200 million in an initial public offering (IPO), for a market value of $250 million. Anchor investors in the SPAC will include subsidiaries of hedge fund managers like of BlackRock Inc. and Millennium Management LLC.
The Siddhi network began with outsourced operations firm Siddhi Ops, founded by Melissa Facchina. Facchina went on to partner with father and son team Brian Finn (the former CEO of Credit Suisse USA) and Steven Finn to launch Siddhi Capital in early 2020. The firm is currently investing out of a $70 million fund, which includes $20 million from preexisting investments made by the Finn family, placing capital in emerging food and beverage companies. Portfolio brands include Sakara, hint, No Evil Foods, Maverick Snacks, Noops, Moku and Recess.
With the formation of Siddhi Acquisition, the Siddhi Capital team is setting their sights on the public market. The Finns and Facchina will serve as co-founders, with Facchina and Steven Finn splitting the role of co-CEO while Brian Finn will also serve as chairman. The SEC filing also notes that Susan Kilsby, a Non-Executive Director of Unilever and Diageo Plc, will act as a senior advisor. Directors of the SPAC will include: Lauri Kien Kotcher, former CEO of personal care brand hello and former Senior Advisor at LCatterton; Susan Guerin, President and Chief Executive Officer of World Finer Foods; and Paul Nardone, former CEO of popchips; among others.
To-date, the filing states, the SPAC’s founders have completed over 45 investments. Though many have been smaller, emerging brands, through Siddhi Ops and Capital, the team has expanded its reach and experience with “mature, later-stage high growth companies.” One advantage Siddhi Acquisition has over other SPACs, the team believes, is its unique background in finance and operations, which has resulted in deep relationships with investors, financial advisors, investment bankers, attorneys, consultants, commercial bankers, accountants and large CPG companies.
The plan is to continue to focus on food and beverage companies, seeking to take advantage of the “transformation” the industry is currently experiencing. Specifically, Siddhi Acquisition will seek a target that is focused on health and wellness or “better-for-you consumption,” such as businesses tackling sugar reduction, grain or gluten free options and plant-based meat and dairy analogs.
“The food and beverage industry is undergoing a transformation as competitors, both old and new, innovate and adapt to an evolving consumer,” the filing states. “We believe that there are many potential targets that are more aligned with this macro trend that could become attractive public companies with long-term organic growth, attractive competitive dynamics and further consolidation opportunities.”
The target must be a company in a high growth segment, with potential for mass market distribution, according to the filing. Building on Facchina’s experience with operations, Siddhi Acquisition will also look for a target that has a “defensible” position and “entrenched relationships across the value chain with an emphasis on scalability.” Siddhi Acquisition has 24 months from the closing of the offering to identify a target and complete a transaction.
“Our investment thesis is primarily driven by our management team’s reputations in the market as partners who are strategic experts in food and beverage, consumer packaged goods (“CPG”) manufacturing, operations, and technology,” The filing states. “We also intend to focus on mission-driven management teams who are committed to addressing real market needs and who are finding voids in the market through personal experiences. We believe that those who can leverage passion will drive the greatest success.”
Siddhi Acquisition did not return a request for comment, however, SEC rules generally require a quiet period after filing.
