Local Bounti, a Montana-based startup that produces fresh greens and herbs using a hydroponic greenhouse system, announced that it would merge with SPAC Leo Holdings to go public on the NYSE. The transaction will provide Local Bounti with USD 400 million in gross proceeds and value the combined company at USD 1.1 billion.  

Strategic partner Cargill will also invest in the deal and is expected to provide debt financing of USD 200 million to support the company’s expansion plans. Leo Holding’s public shareholders will own 24.8% of the company once the deal goes through, which is expected to close in H2 2021. 

The deal proceeds will be used to expand the company's footprint across the western US. It plans to double the capacity at its Hamilton, Montana facility by the end of 2021, launch eight new facilities, and deploy 30 Stock Keeping Units (SKUs) by the end of 2025. Local Bounti also reported its plans for international expansion include launching a subscription-based model alongside new products over the medium to long term. 

The company generated revenue for the first time in 2020. Local Bounti aims to achieve revenue of USD 13 million, USD 85 million, and USD 400 million for 2022, 2023, and 2025, respectively.

Founded in 2018, Local Bounti produces leafy greens indoors and sells them to more than 400 retail stores across the western US. The company claims its products are environmentally friendly, using 90% less water and zero pesticides.