Smith Electric Vehicles to Complete Takeover

December 29, 2010

On Jan. 1, Smith Electric Vehicles US is expected to finalize the purchase of Smith Electric Vehicles, its UK-based parent company.

The $15 million sale will see Smith UK’s current owner, the Tanfield Group, retain 49 percent equity in SEV US, although this is subject to dilution as Smith raises additional equity capital. It will also create the world’s largest manufacturer of commercial electric vehicles.

According to Bryan Hansel, the CEO of Smith Electric US, the sale will signify a bright future for the electric commercial vehicle industry and is evidence that the market for affordable, sustainable commercial fleets is fertile.

The purchase is expected to be split into 20 payments with the first payment made on completion of the sale. In the event of an IPO of SEVUS, the full balance would immediately fall due. In the six months to June 30, 2010, Smith Electric Vehicles reported losses of £2.159million and net assets of £9.067million.

The UK-based company has been manufacturing battery electric commercial vehicles since the 1920s and has an unrivaled UK-wide service and support network that maintains more than 5,000 vehicles for major fleet operators.

Source: The Green Car Website