Green Automotive Company Closes the Acquisition of Blackhawk Manufacturing Inc.
April 17 2014 - 9:02AM
Business Wire
Green Automotive Company (OTCQB: GACR) announces that it has
closed its acquisition of California and Mexico-based Blackhawk
Manufacturing Inc. and its affiliated companies (“Blackhawk”) for a
value of $6m of Green Automotive’s common stock at $0.05 per share,
which equals 120m shares. Blackhawk is one of the foremost
manufacturers of specialist composite materials with facilities in
Bloomington, CA and Tijuana, Mexico and is generating sales of
circa $4.25m per annum and a profit of approximately $407K per
annum according Blackhawk’s financial records. The transaction will
be immediately earnings accretive to GAC.
Green Automotive is acquiring 4 of the 5 businesses that make up
the Blackhawk group: The property in Mexico (estimated value
$2.5m), the operations in Mexico, the transport company, and the
operations in California (Bloomington). Under the terms of the
acquisition, Green Automotive has an 18-month option to acquire the
10 acre real estate in Bloomington for $1m cash and $1m worth of
Green Automotive common stock. The property has an estimated value
of $5.3m.
Blackhawk has been supplying Green Automotive’s shuttle bus
manufacturing business, Newport Coachworks, since it started
operations in 2013. The vertical integration of the Blackhawk
business into Green Automotive helps secure the company’s supply
chain, offers new growth opportunities, brings skilled management
to the team and provides Green Automotive with room to expand as
the business continues to grow.
In addition the acquisition will broaden the technology
portfolio of Green Automotive: Blackhawk has pioneered innovative
manufacturing techniques in open mold (fibreglass) Thermoforming,
injected urethane and resin infusion techniques (RI). Their RI
technology allows the creation of panels of a higher and more
consistent standard, that are lighter, use 60% less resin, with
virtually zero emissions when compared with more traditional
techniques.
Commenting on the acquisition, Ian Hobday, CEO of Green
Automotive: “The Blackhawk acquisition enlarges the size of our
California-based operations, which now has a combined 75 employees,
and will give our shuttle bus manufacturing plant substantial
productivity advantages. Overall it will increase the visibility
and competitiveness of our Group in processes relating to
automotive manufacturing. Moreover we expect it to enhance our
company’s growth. Thanks to Blackhawk’s innovative technology, we
anticipate entering new markets and acquiring new clients.”
Floyd Sanders, President of Blackhawk, said: “We’re pleased to
become a part of the Green Automotive group of companies and look
forward to working with the Green Automotive team to further
enhance our growth opportunities.”
About Green Automotive Company
visit www.thegreenautomotivecompany.com
About Blackhawk Inc. visit
www.blackhawkmanufacturing.net
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
For Green Automotive CompanyPublic Relations:Petra Beitl,
+447791601666Petra.beitl@liberty-ecars.comorInvestor
Relations:Stuart Fine, 908-469-1788stuart@carpedminc.com
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