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Haymaker Bets on Established Growth Companies in Its Fifth SPAC

SPACs have seen a resurgence over the past 12 to 18 months as more established companies look for alternative paths to the public markets. JD Durkin speaks with Andrew Heyer, lead sponsor of Haymaker Acquisition Corp. V, after he and his team rang the closing bell at the New York Stock Exchange, about the company’s latest SPAC, its investment strategy, and the current environment for SPACs.

Heyer says Haymaker V is the firm’s fifth SPAC, raising $287 million in September in what he calls a seamless process after four previous successful SPACs. He explains that while Haymaker has generally focused on consumer businesses, its broader focus is on merging with highly successful, established companies that have growth, setting it apart from SPACs that target earlier-stage or specialized industries like biotech. He points to past deals including OneSpaWorld, the largest company running spas on cruise ships, and ARKO, the fifth-largest chain of convenience stores in the US, and says he named his original private equity firm Mistral after the wind because he likes to invest in businesses with the wind at their back.

On the SPAC market, Heyer says investors are essentially buying a share in a company that owns a trust filled with Treasuries while receiving a free warrant, which he calls a no-brainer with significant upside. He says many companies would like to go public and see SPACs as a potentially better route than a traditional IPO, and that a large number of companies sitting in private equity funds are looking for a way out, which makes up Haymaker’s target market.

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