Just whisks up a plan to raise USD 200mn in cash: Bloomberg

Plant-based eggs manufacturer Eat Just is poaching potential investors to take part in a USD 200.00 million capital raise that could be its last before going public, Bloomberg reported.

Citing people familiar with the matter, the news provider observed that the business, which operates brand Just, is working with an advisor on the transaction, which could see the group reach a USD 2.00 billion valuation.

However, terms have not yet been finalised, the insiders noted, asking not to be identified as the situation is still private.

The news comes five months after media reports suggested Just is planning an initial public offering in 2022.

Reuters cited chief executive Josh Tetrick as saying the company hopes to turn an operating profit before the end of 2021, following which it may look at a stock market flotation.

Andrew Noyes, a spokesman for Just told Bloomberg that as a high-growth business focused on expanding sales and capacity, the group is always evaluating ways to generate capital.

The company has raised over USD 300.00 million in funding from investors such as Khosla Ventures and was last valued at USD 1.20 billion.

Earlier this week, Just announced plans to build and operate its first plant protein facility in Singapore.

The company makes various types of alternative egg products and also mayonnaise.

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Bloomberg reported that plant-based food groups have benefitted in recent years from a change in consumer habits, with institutional investors targeting such firms more.

Shares in Beyond Meat, which makes a meat-free items such as burgers, are up 157.8 per cent since going public in 2019 to USD 172.17 yesterday.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 1,268 deals targeting food manufacturers announced worldwide in 2020 to date.

In the largest of these, Groupe Lactalis agreed to acquire the Kraft Heinz’s natural, grated, cultured and specialty cheese businesses in a deal worth USD 3.20 billion.

Other targets included Danone, Jiangxi Zhengbang Technology, Henan Shuanghui Investment and Development and Bumble Bee Foods.

© Zephus Ltd


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