LISHUI, China, July 17, 2017 /PRNewswire/ -- Tantech Holdings
Ltd. (NASDAQ: TANH), ("Tantech" or the "Company"), a leading
alternative energy company through the use of bamboo-based charcoal
products today announced it completed the acquisition of 70% equity
interest in Suzhou E Motors Co., Ltd. ("Suzhou E Motors"), a
specialty electric vehicles and power batteries manufacturer based
in Zhangjiagang City, Jiangsu Province.
Merger Highlights
- Acquiring 70% equity interest in Suzhou E Motors from Mr.
Henglong Chen
- Broadening customer base and cross-selling opportunities
- Accelerating revenue and earnings growth
- Establishing Tantech Holdings as leader in
environmental-friendly technology
Mr. Zhengyu Wang, Chairman and
Chief Executive Officer of Tantech, commented, "We are pleased to
complete this acquisition today, by acquiring 70% equity interest
in Suzhou E Motors which will make us a leader in specialty EVs in
China,"
Mr. Wang continued, "As discussed in our letter to shareholders
on February 2017, improving the
environment is the Company's core mission. The acquisition brings
economic synergies, new advanced technologies and accelerates our
research and development efforts – resulting in what we believe
will be tremendous value for the Company and its shareholders."
Terms of Merger
Pursuant to the Purchase Agreement executed on May 2, 2016, Supplemental Agreement I signed on
December 22, 2016 and Supplemental
Agreement II signed on July 12, 2017,
the Company shall acquire 70% equity interest of Suzhou E Motors
directly from Mr. Henglong Chen with total cash consideration of
RMB 103,200,000 (approximately
$14.7 million) and a share
consideration of 2,500,000 restricted shares of the Company's
common stock.
The Company had originally negotiated to acquire 100% of Suzhou
E Motors'; however, following
Suzhou E Motors' minority shareholder, Zhangjiagang Jinke Venture
Capital Co., Ltd. (Jinke Venture Capital), a local government-led
VC fund, opted to retain its 30% interest as it believes the
synergy between Tantech Holdings and Suzhou E Motors to be
extremely promising.
The Company exercised such terms with the belief that it is in
the best interests of its shareholders.
Suzhou E Motors – a leader in specialized electric
vehicles
Since its inception in 2011, Suzhou E Motors has produced
consecutive annual revenue growth of greater than 350%, reaching
revenues of $12 million in 2015
compared to $2.7 million in 2014 and
$0.85 million in 2013. Suzhou E
Motors designs, assembles and distributes three types of electric
vehicles:
- Urban sanitary vehicles: Suzhou's urban sanitary
vehicles work at high efficiencies with low operating
expenses. Cleaning surfaces at speeds up to 15 miles per
hour, the vehicles are equipped with professional sanitary vehicle
chassis, front axle drives and
steering, which improve operational ease and reliability. The
vehicle is made of strengthened steel plates and pipes, making it
more durable and corrosion resistant.
- Electric logistics vehicles: Electric logistics vehicles
are designed exclusively for logistics/delivery companies. The
vehicles are six meters in length and 100% powered by electricity.
The vehicles are built with an eye to quality and efficiency with
long-lasting, heavy-duty steel construction; spacious interiors and
ingenious door designs made specifically for the deliverers'
convenience.
- Mini tourist buses: Suzhou's lithium
battery-powered tourist buses come in two sizes – 7 meters and 12
meters. The buses reduce emissions by up to 75% and cut fuel
consumption by as much as half. The buses are also designed with
noise pollution in mind. Interior noise is less than 76 dBs
and acceleration noise is less than 82 dBs.
Growing revenue and cost synergies expected
The combination of both companies will bring strong revenue
synergies. Access to Suzhou Motors technology will offer new,
incremental revenue streams in addition to cross-selling
opportunities to Suzhou's large diversified customer base.
Growth and diversification through acquisition and new
product development
"This is the first of many attractive eco-friendly assets
that we intend to acquire as a way of strengthening our position as
a leader in environmentally-friendly technology and further
diversifying our revenue base," notes Tantech's CEO, Zhengyu Wang.
"As Tantech Holdings becomes a larger player in the EV market,
we are looking at investing in related businesses, such as vehicle
financing, both to build a competitive edge in China's rapidly growing demand for automobiles
as well as a way of further diversifying Tantech Holdings' revenue
and profit streams," commented CEO Wang. According to Bank of
China, the car financing market
was between US$116 -131 billion in
2015. Within this market, the auto financial leasing sector is
estimated to exhibit the strongest growth, at compounded annual
growth rate of at least 60% during the next five years.
Continuing the journey to support the environment
Tantech has a track record and capabilities in the past in
contributing to a more environmental responsible world. After
providing a series of products that proved fully replaceable to
traditional coal, Tantech moved on to the provision of cleaner
energy sources by entering the electric vehicle industry with this
new acquisition.
The addition of Suzhou E Motors will further reduce Tantech's
reliance on the consumer market. Along with expansion into new
businesses, Tantech's revenue and profits are increasingly
insulated by rising demand for household hygiene products. As
disposable income rises, so does interest in environmental
protection and cleanliness. Rising disposable leads to higher
demand for household hygiene items such as antibacterial products
and disinfectants.
With solid technologies and R&D foundation, along with
previous successes, Tantech plans to continue expanding and
diversifying their products by developing and acquiring more
eco-friendly assets in the future.
About Suzhou E Motors Co., Ltd.
Established in April 2011 Suzhou E
Motors Co., Ltd. ("Suzhou E Motors") is an innovative leader in the
design, manufacture and distribution of electric vehicles
("EVs"). With outstanding quality and reliable battery production,
our system enables to effectively integrate renewable and
conventional energy sources across all our product lines. Suzhou E
Motors offers a wide range of EVs, including urban sanitary
vehicles, electric logistics vehicles and mini tourist buses with
current annual capacity of approximately 5,000 EVs. For more
information please visit: http://www.emotorsbus.com.
About Tantech Holdings Ltd.
Established in 2001 and headquartered in Lishui City,
Zhejiang Province, China, Tantech Holdings Ltd., together with
its subsidiaries, develops and manufactures bamboo-based charcoal
products, including a variety of branded consumer products and
electric double-layer capacitor ("EDLC") carbon products for
industrial energy applications. The Company aims to transform
itself from a bamboo-based charcoal products producer to a
vertically integrated company along the EDLC Carbon – power battery
– specialty new energy vehicle value chain. For more information
please visit: http://www.tantechholdings.com
Forward-Looking Statements:
This news release contains forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulations, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the Company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
For more information, please contact:
Tantech Holdings Ltd.
Ms. Ye Ren
IR Manager
+86-578-261-2869
ir@tantech.cn
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SOURCE Tantech Holdings Ltd.