DD3 Acquisition Corp. (DDMX—NASDAQ), a publicly traded special purpose acquisition company and Betterware de Mexico, a Mexico-based direct seller of home organizations products, have entered into a definitive agreement to merge. The combined company will operate as “Betterware” and is expected to remain publicly listed on NASDAQ. The transaction implies an initial enterprise value of approximately $367 million representing a multiple of 8.6x
Betterware’s estimated 2019 EBITDA. Current Betterware shareholders will roll over most of their equity stakes and will remain majority owners of the combined company, with an anticipated approximately 80 percent stake at closing, while the remaining ownership will be held by public investors and DD3. The transaction is expected to be completed during the fourth quarter of 2019, subject to approval from DD3’s shareholders and other customary closing conditions. Betterware was founded in 1995 and has a salesforce of more than 400,000 distributors and associates.