M&A moves

Former Houston energy services CEO's SPAC announces $700M merger with energy transition materials company

A Houston-based SPAC run by the former Weatherford CEO has agreed to merge with a company that's sustainably producing a material required by several energy transition technologies. Photo via Getty Images

Houston-based Pyrophyte Acquisition Corp., a “blank check” SPAC, plans to merge with Canadian quartz silica producer Sio Silica Corp. in a deal valued at more than $700 million.

The companies say the deal carries an enterprise value of $708 million and an equity value of $758 million.

Sio is sitting on a potential supply of 15.2 billion metric tons of high-purity quartz silica, a material needed to produce energy transition technologies such as photovoltaics, solar panels, semiconductors, batteries, and other electronics. Proceeds from the merger will be earmarked for construction of the first phase of Sio’s silica extraction and processing facility near Winnipeg, Manitoba.

“We searched long and hard for the right candidate to combine with Pyrophyte and its energy transition mission. Sio fulfilled all our criteria,” Bernard Duroc-Danner, chairman of Pyrophyte, says in a news release. “We are proud to join Sio on its journey to supply what is becoming in many countries around the world one of the most important strategic minerals for the world’s energy transition.”

In 2021, Pyrophyte’s stock began trading on the New York Stock Exchange in an IPO valued at $201.25 million. Since then, it’s solely been a special purpose acquisition company (SPAC) without any business operations. Typically, a SPAC aims to acquire or merge with a private company that boasts a promising business model.

Duroc-Danner is former chairman, president, and CEO of Houston-based oilfield equipment and services company Weatherford International Ltd.

Calgary, Alberta-based Sio says high-purity quartz silica will represent a $30 billion global market opportunity by 2030. Among the products that rely on silica are semiconductors, solar panels, photovoltaic (solar) cells, optical fibers, and batteries.

Once the deal closes, the combined company will operate as Sio Silica Inc., whose stock will be traded on the New York Stock Exchange. Sio’s CEO, Feisal Somji, will lead the newly formed company.

The deal has been approved by Sio’s and Pyrophyte’s boards but still must be endorsed by the companies’ shareholders.

Trending News

A View From HETI

Two Houston startups have landed on the 2026 Cleantech 50 to Watch list. Photo via Getty Images

Two Rice University spinouts, Coflux Purification and DexMat, appear on a new list of the world’s 50 cleantech companies to watch.

Cleantech Group’s 2026 Cleantech 50 to Watch list recognizes early-stage companies “creating groundbreaking solutions to address some of the world’s most pressing environmental and sustainability challenges.”

Cleantech Group, a market research, consulting, and events company, selects the 50 honorees based on insights from analysts and early-stage innovators, along with public nominations.

Destroying “forever chemicals”

Coflux, founded in 2024, offers an onsite treatment system that captures and destroys manufactured “forever chemicals”—per- and polyfluoroalkyl substances—in water and wastewater. It’s a member of Greentown Houston.

Alec Ajnsztajn, CEO; Jeremy Daum, chief technology officer; and Dana Vazquez, chief commercial officer, co-founded Coflux. Ajnsztajn and Daum earned doctoral degrees from Rice, and Vazquez earned an MBA from the university.

Coflux spun out of Rice labs directed by professors Rafael Verduzco and Pulickel Ajayan.

Last year, Coflux received a $175,000 grant from the U.S. Food and Drug Administration’s National Institute of Food and Agriculture. The startup has also raised more than $500,000 in non-dilutive funding, including $80,000 awarded in 2024 by Rice’s One Small Step Grant program.

Promoting an alternative to copper

DexMat, founded in 2015, produces carbon nanotube products such as fibers, yarns, cables, and fabric. The company’s products address demand for materials that can reduce carbon emissions, according to CB Insights.

Its main product, Galvorn, is a copper alternative made of carbon nanotube fibers. CB Insights says Galvorn is engineered to be lighter and stronger than traditional conductive materials like carbon and steel. It’s used in industries such as energy, aerospace, defense, automotive, consumer electronics, and health care.

DexMat emerged from Matteo Pasquali’s Carbon Lab at Rice. Pasquali, co-founder of DexMat, co-invented the company’s technology with the late Nobel Prize-winning chemist Rick Smalley. Smalley was a professor of chemistry, physics, and astronomy at Rice.

Pasquali is a professor of chemical and biomolecular engineering, chemistry, materials science, and nanoengineering at Rice. He co-founded DexMat with Rice graduate Dmitri Tsentalovich, the company’s director of product innovation.

Earlier this year, DexMat raised $5 million in seed funding from Non Sibi Ventures, Governance Partners, Tailwind Futures, BetterWay, Capital Factory, and other investors. The company also secured $3 million in non-dilutive funding.

In 2023, DexMat raised $3 million in a pre-seed round led by Shell Ventures.

Trending News