Green Automotive Company announced it has signed a definitive agreement to acquire Newport Coachworks Inc. ("NCI"). The business will be run by Carter Read.
GAC will acquire 100 percent of the issued and outstanding common stock of NCI in exchange for an undisclosed number of shares in GAC; the transaction is valued at up to $13,000,000. The
terms of the transaction include GAC providing certain financing to NCI which will be used over the next 12 months to establish and expand NCI's manufacturing facilities and to invest in new product development.
Newport Coachworks' new manufacturing facility is based in California where it has the capacity to produce in excess of 500 busses annually, representing potential revenues of $37,000,000. Pat Butler, Vice President of Sales at NCI, a 25-year veteran of the bus and limo industry, regarding the news of the takeover, "This is going to be great for our business because going forward I believe NCI will be positioned to succeed in opening new markets both domestically and abroad particularly in the shuttle bus segment of the industry."
Carter Read, President of Newport Coachworks, with over 29 years' experience in bus and limo manufacturing, is a highly regarded industry leader, having run Tiffany Coachworks as President for 23 years. During this time he developed over 9 models of busses ranging from 11500 lb GVW to 33000 lb GVW for the North American market where he built a reputation for quality, reliability, style and value. Vehicles manufactured under his direction deployed the very latest technology, as he is known as an innovator and is always seeking new ways to improve product quality.
Commenting on the deal, Mr. Read remarked: "I am delighted to be a part of the GAC team, and share in their exciting plans and growth prospects. The opportunity to build busses not just for North America but also for export adds a new dimension to our business. With a range of products from 19-seater shuttles through Limo busses to 52 seaters, we cover every sector of the bus industry with the highest quality products."
Fred Luke, President of Green Automotive, said: "This is simply the next step in our development strategy of acquiring vehicle converters in niche markets where we can generate solid and profitable growth. Having an industry veteran like Carter Read join GAC, together with his experienced team, adds depth to our management and should position us to close future acquisitions already in the negotiations. We expect to connect Newport Coachworks with other parts of our business in order to create some exciting new product developments."