Clearlake-Backed Janus International To Go Public Via SPAC Merger

Janus International Group LLC, which is backed by private equity firm Clearlake Capital Group, is going public via the SPAC route by merging with Juniper Industrial Holdings Inc JIH.

What Happened: Janus makes cutting-edge access control technologies and builds product solutions for the self-storage and industrial sectors. The merger deal with Juniper puts Janus’ enterprise value at $1.9 billion, including debt.

Janus intends to list on the NYSE under the ticker symbol “JBI.” Juniper will finance the transaction with $348 million cash held and $250 million in PIPE funding from investors such as Baron Capital Group, Fidelity Management & Research Company LLC, and members of Juniper’s Board of Directors, including former chairman and CEO of Honeywell International Inc HON Dave Cote.

Why It Matters: Clearlake had acquired Janus in 2018 for undisclosed terms. Post completion of the deal, existing Janus shareholders, including Clearlake, will hold a majority stake, while Juniper founders are expected to own approximately 5%.

Janus current CEO, Ramey Jackson, will continue to lead the company after going public. “Over the last five years at Janus, we have nearly doubled our revenue, and we expect to continue showing strong organic growth in the future as a public company,” said Jackson.

Benzinga’s Take: SPAC mergers have gained steam in 2020, making it the easier choice for private companies to go public. More than 235 SPAC companies have listed on the U.S. exchanges in 2020, raising roughly $75 billion, as per the Financial Times. 

Many critics argue that the SPAC route is less transparent and costly compared to a traditional IPO.

Price Action: JIH shares are trading higher by 3.38% to $10.70 in the pre-market session on the last check Tuesday.

Related News: 12 New SPACs Filed Offerings On Friday: What Investors Should Know