Three Firms Guide X-Energy’s $2 Billion Go-Public SPAC Merger

Latham & Watkins is advising X Energy Reactor Co., a developer of “advanced” small nuclear reactors, on its merger with a special purpose acquisition company backed by private equity firm Ares Management.

Kirkland & Ellis is counseling the SPAC, Ares Acquisition Corporation, on the tie-up, which will see the combined company valued at around $2 billion, according to a statement.

Ropes & Gray is representing UBS Securities LLC and Citigroup Global Markets Inc., which are the capital markets advisers to Ares Acquisition.

X-Energy company has received funding from the US Department of Energy as part of the department’s advanced reactor demonstration program.

The Rockville, Maryland-based company said it expects growing demand for low-carbon energy in the US, Canada, and UK to significantly boost its revenue opportunities in the coming decades. It expects the merger to accelerate its growth strategy through additional investment opportunities and financial flexibility.

The transaction is supported by $120 million in financing from Ares Management, Ontario Power Generation Inc., and hedge fund Segra Capital Management. They join existing investors Dow and Curtiss-Wright Corp.

Upon the transaction’s close, expected in 2023’s second quarter, the combined company will be named X-Energy, Inc., and its shares will be listed on the New York Stock Exchange, the statement said.

Latham said it is representing X-energy with a corporate deal team led by Washington-based partners Rachel Sheridan, Nick Luongo, and Paul Sheridan.

Kirkland said its team advising Ares Acquisition was led by corporate partners Monica Shilling, and Dov Kogen.

Ropes & Gray said its team counseling UBS Securities and Citigroup Global Markets is led by capital markets partner Paul Tropp and includes capital markets senior attorney Paul Kellogg.