RIVERSIDE, Calif.--(BUSINESS WIRE)--Green Automotive Company (OTCQB: GACR),today announced that it has signed a binding agreement to buy Transhock Ltd., a well established re-manufacturer and distributor of vehicle parts and accessories based in the West Midlands in the UK, the heart of the UK Automotive Industry. The company reported circa $7m+ of Revenues for the year ended 31st March 2013 (to UK GAAP), and was both profitable and cashflow positive. The transaction will be earnings accretive to GAC and was paid for with $1.8m in equity. For Green Automotive this acquisition presents an opportunity to strengthen its position in the growing market for recycling vehicle parts and in particular to extend, and develop its range of remanufactured parts for electric vehicles, especially in the area of battery technology.
Transhock Ltd., a 28 year old privately owned company, has a proven track record of growth and innovation as demonstrated by its ability to maintain profitability throughout the latest recession. Transhock Ltd is managed by two partners (David Davies and Derek Neale) who will remain with the business post acquisition, strengthening the GAC management team. The business has a total of over 50 employees and operates to ISO 9001 standards. It benefits from an excellent reputation in the UK market with a diversified customer base of over 2500 clients from which repeat business represents 85-90% of sales.
Commenting on the agreement, Ian Hobday, CEO of Green Automotive Company said: “Recycling and remanufacturing car and truck parts is a lucrative business that also makes environmental sense. By reusing existing parts instead of making new ones, we not only reduce operating costs, but more importantly reduce greenhouse gases and our environmental footprint. GAC through its Liberty E-Care business had already started the process of remanufacturing various EV parts and is pioneering the refurbishment of EV batteries. By bringing Transhock into the GAC team, we can add to their existing business our emerging electric vehicle parts business. By doing this we will gain economies of scale, improve turnaround time, expand our offerings and provide a finished product of a higher quality and better presentation. As the use of EV’s continues to grow so the demand for remanufacturing parts will grow with it, and we’ll be well placed to exploit this developing trend. Following our 2 major acquisitions, Blackhawk and Transhock, we have brought in more than $12MM in additional revenues to our growing existing businesses. GAC will now focus on consolidating and integrating these businesses into our group paving the way for future growth.”
David Davies, Director of Transhock Ltd: “We’re excited about joining the GAC group, and feel ready to make a good contribution to the group’s overall strategy. Our business can operate easily on both sides of the “pond”, so we look forward to initiating our parts remanufacturing efforts, especially for EV’s in America too.”
About Green Automotive Company - Visit www.thegreenautomotivecompany.com.
Forward Looking Statements - This release includes forward-looking statements. For a copy of the Company’s full statements regarding forward-looking statements please click here: Safe Harbor Statement » Green Automotive Company
