Footprint enters US$1.6B merger with Gores Holdings in plant-based packaging boom

17 Dec 2021 --- US-based materials science company Footprint is entering a merger with acquisition company Gores Holdings to take its plant-based coating and process packaging technologies public. The combined company will have a total enterprise value of US$1.6 billion.

Footprint, founded in 2014, has developed what it says is a “groundbreaking blend of advanced, plant-based packaging materials,” which it claims can compete with traditional plastic-based technologies on performance and price. 

Troy Swope, co-founder and CEO of Footprint, says the company’s mission is to create a healthier planet. 

“Step one is to design, develop and manufacture plant-based fiber solutions as an alternative to single-use plastics. Today marks an exciting inflection point in our seven-year history inventing new materials that challenge the status quo.” 

“The balance sheet strength of the combined company is anticipated to enable Footprint to expand our operations and geographic reach as we scale our technology.”

A range of plant-based packaging solutions by Footprint.Blue-chip backing 
Footprint’s portfolio of plant-based solutions has created “tremendous” global demand from major companies including Conagra, General Mills, Gillette, JBS Foods, Kraft, McDonald’s, Nestle, Upfield, Procter & Gamble, Quaker Oats, Sweetgreen, Taylor Farms, Tyson, Unilever, Beyond Meat and Walmart. 

The company’s stockholders, including Conagra, JBS, Eggland’s Best and Sweetgreen, will roll all their equity holdings into the newly public company.

Footprint says it pulls over US$500 million in annual revenue contracted by its customers. 

Alec Gores, chairman and CEO of The Gores Group, says Footprint “is a true pioneer and disruptor in [environmental] sustainability, delivering leading technology and solutions that are revolutionizing the use of plant-based materials.”

“Game changer” 
Footprint’s portfolio of fiber-based solutions is composed of plant produce that can withstand moisture on products like fresh meat and fish. Shelf life in the packaging can reach between 12-18 months, similar to properties offered by virgin plastics.

Troy Swope, a co-founder and CEO of Footprint.The products are also biodegradable, compostable and recyclable and can be used in microwave and oven cooking. 

Mark Stone, senior managing director of The Gores Group, says the company’s offerings present “game-changing materials science solutions that are the gold standard in the industry as the world transitions to plastic alternatives.” 

This year, Innova Market Insights recognized the boom in fiber-based packaging solutions by pegging “Fiber-based Frenzy,” a top trend for 2021. The market researcher notes growing global policies on single-use plastics is creating an industry rush for recyclable solutions by using natural fibers; 46% of global consumers would accept decreased product shelf life if it meant more sustainable packaging. 

Plant-based panacea 
Footprint is not the only company seeing a boom in investment and interest for its plant-based packaging. 

This year, researchers at the University of Cambridge, UK, developed a plant protein-based biomaterial that can replace synthetic materials and virgin polymers in the packaging industry. The material’s creators say it is biodegradable, marine-degradable and as strong as conventional plastic in many household products. A full commercial launch will take place in 2022.

Meanwhile, Germany-based foodservice packaging specialist Delivery Hero is attempting to fight threats to environmental and human health by distributing 10 million units of plant-based, PFAS free packaging to the sector. 

By Louis Gore-Langton