Green Automotive Company Signs Binding Agreement to Acquire UK Based Parts Remanufacturing Business Transhock Ltd
March 04 2014 - 8:00AM
Business Wire
And professionalizes its EV battery
recycling business
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
Public Relations Green AutomotivePetra Beitl,
+447791601666Petra.beitl@liberty-ecars.comorInvestor
Relations:Stuart Fine, 908-469-1788stuart@carpedminc.com
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