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Fast Radius to List on NASDAQ Through Business Combination with ECP Environmental Growth Opportunities Corp.

By Fast Radius Press Release

SUMMIT, N.J. and CHICAGO -- Fast Radius Inc., a cloud manufacturing and digital supply chain company, and ECP Environmental Growth Opportunities Corp. have entered into a definitive agreement that will result in Fast Radius becoming a publicly-listed company.

In addition to additive manufacturing, such as these units, Fast Radius provides CNC machining, plastic injection molding, and urethane casting services. (Provided by Fast Radius)

The Fast Radius solution combines proprietary software with a network of company-owned distributed micro-factories and third-party suppliers. This allows engineers to design, produce, and fulfill custom parts across a range of manufacturing technologies, including additive manufacturing, CNC machining, and injection molding.

The Fast Radius Cloud Manufacturing Platform has served over 2,000 customers, including Fortune 500 companies in the automotive, aerospace, medical, industrial, and consumer industries, according to the company. The platform provides industrial-certified parts at production volumes (e.g., thousands of units, not just prototypes) and has made over 11 million custom parts to-date.

The Cloud Manufacturing Platform consists of:

  • Infrastructure: A network of distributed Fast Radius micro-factories and a set of third-party suppliers, in addition to a proprietary software layer to manage the infrastructure.
  • Operating System: A software-driven user experience for customers and internal operations, including machine learning-driven insights.
  • Apps & Services: An evolving ecosystem of apps and services, providing access to manufacturing knowledge, tools, and elastic capacity. Services running on the platform today include Fast Radius On-Demand, Fast Radius Virtual Warehouse, and Fast Radius Additive Launch.
Instead of storing parts physically, companies will have the ability to store parts digitally in the Fast Radius Virtual Warehouse. Companies can produce products locally in a certified micro-factory where needed.

UPS has partnered with Fast Radius to support the expansion of its digital manufacturing and supply chain infrastructure. Fast Radius has established one of its micro-factories on-site at UPS's Worldport facility in Louisville, Ky.

Investment Highlights and Growth Opportunities

Fast Radius says it plans to build the first $100+ billion cloud manufacturing and digital supply chain company, presenting an investment opportunity in Industry 4.0 and next generation infrastructure. Highlights include:

Large and growing addressable market. The more than $350 billion component manufacturing industry, including production across additive manufacturing, CNC machining and injection molding, continues to grow and expand.

Global demand is rising for (1) more agile and sustainable supply chains, (2) modern, consumer-like experiences in industry, and (3) real impact from Industry 4.0 innovations, including new tools in digital design, simulation, equipment, and digital factory infrastructure.

Fast Radius says it has produced over 11 million parts and served over 2,000 customers across additive manufacturing, CNC machining, injection molding, and other manufacturing technologies – resulting in approximately 96% revenue CAGR over the past four years.

Lou Rassey, Co-Founder and CEO of Fast Radius, commented: “We are building a first-of-its-kind Cloud Manufacturing Platform that is providing a new infrastructure to design, make and move physical things in the digital age. As the Platform expands, we believe cloud manufacturing will have as great an impact on driving innovation in the physical world as cloud computing has had in the digital world. The benefits from the software and hardware powering cloud manufacturing are tangible and significant – the cloud brings improved speed, flexibility, cost, and accessibility to industry 4.0, all while providing a more sustainable model for global supply chains.”

Doug Kimmelman, Chairman of ENNV, commented: “The Fast Radius Cloud Manufacturing Platform™ provides a fundamentally more sustainable way to produce and fulfill parts around the world. We look forward to partnering with Lou and his team to accelerate growth as they execute on their proven business model and capitalize on the significant opportunities in the growing custom parts manufacturing market. As a public company, we believe that Fast Radius will be even better positioned to maintain its leadership in the software and industrial technology industry.”

Transaction Overview

The combined company will have an estimated post-transaction enterprise value of $995 million with an estimated equity value of $1.4 billion from the contribution of $445 million in gross cash proceeds from the transaction. Proceeds will consist of up to $345 million of cash held in ENNV's trust account (assuming no redemptions) and an additional $100 million fully committed private investment (the "PIPE"), including a $25 million forward purchase commitment from certain accounts managed by Goldman Sachs Asset Management, L.P. Other investors in the PIPE include UPS, Palantir, ECP and other institutional investors.

The net proceeds raised from the transaction will be used to support Fast Radius' continued growth across customer acquisition, software development, and micro-factory expansion. Fast Radius' growth strategy is projected to generate revenue and EBITDA of $635 million and $135 million, respectively, in 2025.

Current Fast Radius management, employees and existing shareholders will roll 100% of their existing equity holdings into equity of the combined company. The business combination has been unanimously approved by the boards of directors of both Fast Radius and ENNV. The business combination is expected to close in Q4 2021, subject to regulatory and stockholder approvals, and other customary closing conditions.

Upon closing of the transaction, ENNV will be renamed "Fast Radius, Inc." and is expected to remain listed on the NASDAQ.

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