Capstar Special Purpose Acquisition Corp.’s $1.3 Billion Combination with Gelesis Inc.

Kramer Levin represented Capstar Special Purpose Acquisition Corp. , while Goodwin Procter represented Gelesis in the transaction. Winston & Strawn served as counsel to the placement agents.

Gelesis, Inc., a biotherapeutics company advancing biomimetic superabsorbent hydrogels to treat excess weight and metabolic disorders, and Capstar Special Purpose Acquisition Corp. (NYSE: CPSR) (“Capstar”), a special purpose acquisition company sponsored by affiliates of Capstar Partners, LLC and certain private funds managed by PIMCO, announced that they have entered into a definitive business combination agreement.

Upon completion of the transaction, the combined company’s securities are expected to be traded on the New York Stock Exchange (NYSE) under the symbol “GLS.” The transaction values the combined company at an equity value of approximately $1.3 billion and includes a fully committed $100 million PIPE financing.

Citi served as exclusive financial advisor to Gelesis. UBS Investment Bank served as exclusive financial and lead capital markets advisor to Capstar. UBS Investment Bank and Citi served as private placement agents to Capstar with respect to the PIPE financing. BTIG, LLC also served as a capital markets advisor to Capstar.

The Kramer Levin team advising Capstar was led by Corporate partners Ernest S. Wechsler, Christopher S. Auguste and Adi Herman, and included Corporate associates Ilya Kontorovich, Amanda Webber and Nicholas Tarnowski, and law clerk Jackson D. Mann; Litigation partner Alan R. Friedman and associate Boaz Cohen; Technology and IP Transactions partner Harry Rubin, and associates Michelle Park and Kaelin Brittin; Intellectual Property partner Irena Royzman and special counsel Marcus A. Colucci; Executive Compensation and Employee Benefits partner Marissa J. Holob and special counsel Avram J. Cahn; Employment Law partner Robert N. Holtzman and law clerk Kelly Schreiber; Tax partner Barry Herzog and counsel Helayne Oberman Stoopack; and Environmental partner Charles S. Warren and associate Julia A. Quigley. Summer associate Hamilton Drucker provided assistance.

Winston & Strawn represented the placement agents, Citigroup Global Markets Inc. and UBS Investment Bank with a team led by partner Michael J. Blankenship, supported by associates John P. Niedzwiecki and Ben D. Smolij.

Involved fees earner: Christopher Auguste – Kramer Levin Naftalis & Frankel; Kaelin Brittin – Kramer Levin Naftalis & Frankel; Avram Cahn – Kramer Levin Naftalis & Frankel; Boaz Cohen – Kramer Levin Naftalis & Frankel; Marcus Colucci – Kramer Levin Naftalis & Frankel; Alan Friedman – Kramer Levin Naftalis & Frankel; Adi Herman – Kramer Levin Naftalis & Frankel; Barry Herzog – Kramer Levin Naftalis & Frankel; Marissa Holob – Kramer Levin Naftalis & Frankel; Robert Holtzman – Kramer Levin Naftalis & Frankel; Ilya Kontorovich – Kramer Levin Naftalis & Frankel; Helayne Oberman Stoopack – Kramer Levin Naftalis & Frankel; Michelle Park – Kramer Levin Naftalis & Frankel; Julia Quigley – Kramer Levin Naftalis & Frankel; Irena Royzman – Kramer Levin Naftalis & Frankel; Harry Rubin – Kramer Levin Naftalis & Frankel; Nicholas Tarnowski – Kramer Levin Naftalis & Frankel; Charles Warren – Kramer Levin Naftalis & Frankel; Amanda Webber – Kramer Levin Naftalis & Frankel; Ernest Wechsler – Kramer Levin Naftalis & Frankel; Michael Blankenship – Winston & Strawn; John Niedzwiecki – Winston & Strawn; Ben Smolij – Winston & Strawn;

Law Firms: Kramer Levin Naftalis & Frankel; Winston & Strawn;

Clients: Capstar Special Purpose Acquisition Corp.; Citigroup Global Markets Ltd; UBS Investment Bank;

Author: Martina Bellini