Green Automotive Company 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 a manufacturer of specialist composite materials with facilities in Bloomington, Calif., 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 four of the five 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.
Ian Hobday, CEO of Green Automotive, said “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.”
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