Sternlicht-Backed SPAC Jaws' $4.4B Merger Deal With Cano Health Could Be Announced Today: WSJ

Blank check company Jaws Acquisition Corp JWS is holding talks with Cano Health LLC for a reverse merger, according to the Wall Street Journal. If successful, the deal, which values Cano Health at $4.4 billion, including debt, could be announced as soon as Thursday.

What Happened: Cano Health is set to receive an $800 million investment from Jaws, if the deal follows through. Founded in 2002, the healthcare provider was acquired by private equity firm InTandem Capital Partners LLC, according to Crunchbase. Cano is mainly in the business of operating primary healthcare centers for seniors.
Why Does It Matter: Jaws Acquisition is backed by billionaire entrepreneur Barry Sternlicht, who also serves as the CEO of real estate investment fund Starwood Capital Group Holdings L.P.

In an April filing with the U.S. Securities and Exchange Commission, Jaws Acquisition said that it would target growth-oriented companies that do not compete with Starwood — ruling out companies from sectors like real estate, lodging, oil and gas, and energy infrastructure.

According to an SEC filing in May, the Special Purpose Acquisition Company (SPAC) raised a collective amount exceeding $690 million from its initial public offering and private placement warrants combined. Funds mobilized were held in a trust account managed by Continental Stock Transfer & Trust Company.

Price Action: JWS gained 3.65% in Wednesday’s after-hours session at $10.50 per share.

Posted In: Barry SternlichtBlank Check CompaniesSPACsStarwood Capital GroupThe Wall Street JournalM&ANewsHealth CareIPOsGeneral