Blank-Check Company Backed By Goldman Sachs Files for IPO

By Maria Armental 

GS Acquisition Holdings Corp., a blank-check company backed by Goldman Sachs Group Inc., is trying to raise some $600 million in an initial public offering.

Blank-check companies, also known as special purpose acquisition companies, or SPACs, are listed companies that raise money from investors for acquisitions and have become a popular tool among well-known executives, particularly in the oil patch.

In this case, GS Acquisition has tapped David M. Cote, who led the turnaround of industrial conglomerate Honeywell International Inc. as chief executive. GS Acquisition will focus on seeking deals in the industrial sector, according to a Friday securities filing.

"We believe Mr. Cote's industry experience and operating capabilities, paired with Goldman Sachs' unique sourcing infrastructure and experience investing in public and private markets, will make us a partner of choice for potential business combination targets," the company said in the filing. It also said it has yet to have substantive discussions with any acquisition target.

Mr. Cote had served as a director at the Federal Reserve Bank of New York and was involved in the search for the bank's new president, but he unexpectedly stepped down from the post in March. The New York Fed said at the time that Mr. Cote was leaving because he was considering new business opportunities that could affect his eligibility to hold the post.

The formation of GS Acquisition serves as the latest example of activity in the SPAC space. The Wall Street Journal reported in December there had been almost $14 billion worth of new listed shares in blank-check companies, a record, outstripping 2007's $12.3 billion global issuance.

Separately, LF Capital Acquisition Corp., another blank-check company, also filed for an initial public offering on Friday. LF Capital Acquisition, led by former BNP Paribas SA Chairman Baudouin Prot, said it was seeking to raise more than $100 million to target a "business in the commercial banking and financial technology industries."

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

May 18, 2018 18:30 ET (22:30 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.