Embraer’s Eve to list on NYSE after merger with Zanite Corp

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by Mike Stones
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Embraer is to merge its electric aircraft subsidiary Eve with Zanite Acquisition Corp, a special purpose acquisition corporation (SPAC), ahead of listing on the New York Stock Exchange.

The deal, which values Eve’s equity at $2.9bn is expected to close in the second quarter of 2022. Embraer will remain a majority stockholder with about an 80% equity stake in Eve. The transaction will develop and commercialise Eve’s UAM solution spanning eVTOL design and production, service and support, fleet operations and urban air traffic management, according to the OEM. Eve Holding, Inc will trade under the tickers EVEX and EVEXW.

Included in the transaction are up to about $237m of cash from Zanite and a $305m private investment in public equity  (PIPE), anchored by Embraer, Zanite Sponsor LLC, financial investors and a group of partners. The partners include: Azorra Aviation, BAE Systems, Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce and SkyWest, Inc.

Eve has an order pipeline of about $5.2bn. This includes: 1,735 vehicle orders, via non-binding letters of intent, from 17 launch customers, including fixed wing and helicopter operators, aircraft lessors and ride sharing platform partners. Embraer has granted Eve a royalty-free license to OEM’s background intellectual property to be used within the UAM sector.

Embraer president and CEO Francisco Gomes Neto said the merger and listing demonstrated the investors’ confidence in UAM. “We believe that the urban air mobility market has enormous potential to expand in the coming years based on an efficient, zero-emissions transport proposition, and that with this business combination, Eve is very well positioned to become one of the major players in this segment,” said Neto. “As a global aerospace company, with leadership position in multiple segments, we understand that innovation and technology play a strategic role in driving sustainable growth and redefining the future of aviation.”

Kenn Ricci, co-CEO of Zanite and principal of Directional Aviation Capital, a member of Zanite’s sponsor, explained the allure of Eve. “After an extensive search, we selected Eve because of its simple and certifiable eVTOL design, its capital efficient approach to fleet operations and Embraer’s global footprint that we believe will enable Eve to not only reach vehicle type certification, but to scale its manufacturing, support and operations globally,” said Ricci.

Eve will be led by co-CEOs Jerry DeMuro, former CEO of BAE Systems, Inc., and Andre Stein, who has led Eve since its launch and has served in leadership roles with Embraer for more than 20 years.

David Fowkes advised Embraer while Jefferies was lead adviser to Zanite.

 

Eve’s Zanite Corp merger and NYSE listing – at a glance

  • *Embraer to merge Eve with SPAC Zanite Acquisition Corp ahead of NYSE listing
  • *Deal, valuing Eve’s equity at $2.9bn, to close Q2 2022
  • *Embraer remains majority stockholder with 80% equity stake in Eve
  • *Deal intended to develop and commercialise Eve’s UAM solution spanning eVTOL design and production, service and support, fleet operations & urban air traffic management
  • *Transaction includes $237m in cash from Zanite and a $305m PIPE, anchored by Embraer, Zanite Sponsor LLC, financial investors and partners
  • *Partners include: Azorra Aviation, BAE Systems, Bradesco BBI, Falko Regional Aircraft, Republic Airways, Rolls-Royce and SkyWest
  • *Eve has order pipeline of about $5.2bn, including: 1,735 vehicle orders, via non-binding letters of intent, from 17 launch customers, including fixed wing and helicopter operators, aircraft lessors and ride sharing platform partners
  • *Eve tol be led by co-CEOs Jerry DeMuro, former CEO of BAE Systems, Inc, and Andre Stein, who has worked with Embraer for 20 years.
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