THE WHAT? Roth CH Acquisition I Co and PureCycle Technologies have announced that they have entered into a definitive merger agreement.

THE DETAILS Upon closing, the newly created holding company will be re-named PureCycle Technologies Inc and will be listed as PCT on the Nasdaq Capital Market.

The transaction includes US$90 million in equity private placements and a US$250 million fully-committed pipe anchored by Sylebra Capital, as well as leading endowment and pension funds and global family offices. Post transaction, the company will be valued at around US$1.2 billion.

“This transaction represents a key milestone in PureCycle’s mission to transform polypropylene into a recyclable and sustainable product,” said Mike Otworth, CEO of PureCycle. “Our recycling process produces virgin-like resin that we believe is suitable for high-value, food-grade consumer products, and we believe we are well-positioned to meet the consumer demand for recycled content as well as global sustainability mandates.”

THE WHY? The pair are on a mission to solve the massive environmental problem created by plastic waste in landfills and oceans and, with Roth’s backing, PureCycle will be able to globally commercialize a cost-effective method to recycle waste polypropylene to like-new resin. The deal is supported by the polypropylene recycling firm’s global partners – among them Procter & Gamble and L’Oréal – enabling them to meet their sustainability goals.