Storage firm ESS debuts on NYSE after blank check merger

US long-duration iron flow battery maker ESS Inc has gone public after completing its merger with special purpose acquisition company ACON S2 Acquisition Corp (NASDAQ:STWO).

ESS started trading on the New York Stock Exchange (NYSE) on Monday under the ticker symbol GWH, becoming, it says, the first publicly traded US long-duration storage company.

ESS made a strong market debut with its shares closing up by more than 128% on October 12.

“The proceeds from this transaction will enable us to scale our operations to meet the growing global demand for a product that the world needs today to support the transition to clean, renewable energy,” said ESS chief executive Eric Dresselhuys.

The deal involves USD 308 million (EUR 267m) of pro forma net cash to the combined company. This includes a private investment in public equity (PIPE), led by institutional investors such as Fidelity Management & Research Company LLC, Koch Industries, Tortoise Capital Advisors, SB Energy Global Holdings Ltd, Breakthrough Energy Ventures and BASF Venture Capital.

The blank check company ACON S2 is sponsored by an affiliate of private equity firm ACON Investments LLC. The merger agreement was announced in May.

ESS recently announced a framework agreement with SB Energy, a subsidiary of SoftBank Group Corp (TYO:9984), to deploy 2 GWh of its batteries through 2026.

(USD 1 = EUR 0.865)

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