Smith Electric Vehicles U.S. (SEV) and the Tanfield Group announced today that the American maker of all-electric trucks will purchase its United Kingdom-based parent company, Smith Electric Vehicles U.K. for $15 million in January.
The Kansas City-based company announced the long-expected purchase of Smith Electric Vehicles U.K. on Thursday, adding that it will be effective Jan. 1. It said that Tanfield will retain a 49 percent share of the unified company but that the share could be diluted if SEV pursues an initial public offering or takes other steps to raise equity.
According to the deal Tanfield will receive US$15,000,000 (Consideration) in respect of the business and certain assets of SEV. The Consideration will be split into 20 payments, payable monthly, with the first such payment being made on Completion. Interest will accrue on the principal outstanding amount at the rate of 4% over base rate, the company said.
The board of Tanfield believes that a consolidation of the Smith Electric Vehicles UK entity into our associate company, SEVUS, creating a single, larger US based business, would be in the best interests of shareholders, particularly in light of the plans that SEVUS management has for the combined business post this transaction, chief executive of Tanfield Darren Kell said.
Smith Electric Vehicles (also known as Smith's) is the world's leading manufacturers of electric commercial vehicles; battery-powered vans, and trucks Smith Electric Vehicles has always focused on the commercial vehicle market. The company has also been selected by US department of Energy to receive $32 million in grant funding toward the production of all-electric, zero emissions commercial trucks.