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Sustainable Retailer Grove Collaborative Goes Public

June 27, 2022
June 27, 2022
Grove Collaborative

While many companies are rethinking or scrapping their IPO plans Grove Collaborative went public through a SPAC transaction sponsored by the Virgin Group, trading on the New York Stock Exchange under the ticker symbol "GROV."

WHO: Launched in 2016 as a Certified B Corp, Grove Collaborative is transforming consumer products into a positive force for human and environmental good. Grove is the largest independent home and personal care brand focused on health and sustainability. Driven by the belief that sustainability is the only future, Grove creates and curates over 150 high-performing eco-friendly brands of household cleaning, personal care, laundry, clean beauty, baby, and pet care products serving millions of households across the US each year. With a flexible monthly delivery model and access to knowledgeable Grove Guides, Grove makes it easy for everyone to build sustainable routines.

Virgin Group Acquisition Corp. II was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.

IN THEIR OWN WORDS: Stuart Landesberg, co-founder and CEO of Grove, said: "Today marks an important milestone, and we are thrilled to close our business combination with VGII and begin our next chapter as a publicly-traded company. I would like to thank our partners at Virgin, our board of directors, and all of my colleagues at Grove who have contributed to this achievement. Our path to profitability is clear and we will continue to advance our mission to transform consumer products into a positive force for human and environmental health. We expect the inevitable transition away from single use plastic will only accelerate as consumers increasingly demand more sustainable options, and Grove is leading the charge."

Richard Branson, Virgin Group founder, added: "I've long believed in the power to change business for good and Grove's core purpose and mission is a fantastic example of that. I am confident in Grove's ability to build upon its unique platform and beloved brand to disrupt and transform the consumer products industry. Stu and his world class team have an ability to innovate quickly, tremendous opportunity to scale and they are poised for long-term profitable growth. I look forward to continuing our partnership as Grove begins life as a public company."

DETAILS:

  • VGII changed its name to Grove Collaborative Holdings, Inc. (New Grove). New Grove's shares and warrants are expected to begin trading on the New York Stock Exchange under the ticker symbols "GROV" and "GROV WS”.
  • The transaction included an $87 million PIPE investment from an affiliate of the sponsor of VGII and new and existing Grove investors, including Lone Pine Capital, Sculptor Capital Management, General Atlantic, and Paul Polman. 
  • ​​In addition, to increase deal certainty and ensure additional funding for the pro forma company, Grove previously announced a $50 million backstop subscription agreement with VGII and Corvina Holdings, Limited ("Corvina"), an affiliate of the sponsor of VGII, pursuant to which Corvina subscribed for and purchased $27.5 million of common stock from Grove, which closed on March 31, 2022, and subscribed for and purchased $16.7 million of common stock of the combined company, which closed concurrently with the closing of the business combination.
  • Grove Collaborative recently announced Drew Barrymore has joined its team as an investor as the company's first global brand and sustainability advocate.
  • In December of 2020, Grove Collaborative raised $125 million at a $1.32 billion valuation. Counterpoint Global at Morgan Stanley, Sculptor, Nextview, and Glynn participated in the round.
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