Electric Truck manufacturer to merge with US counterpart
Electric trucks innovator Tevva which last year opened a base at MIRA Technology Park in Nuneaton, Europe’s leading mobility research and development location for developing advanced automotive technology, is to merge with ElectraMeccanica
ElectraMeccanica, a designer and assembler of electric vehicles, and Tevva, a pioneer in electric medium- and heavy-duty commercial vehicles have entered into a definitive agreement, which is intended to accelerate their combined ability to capture the growing opportunity in commercial electric trucks.
Tevva recently began deliveries of its 7.5t battery-electric truck to commercial fleet customers focused on urban delivery – a critical and high-growth segment of the overall commercial truck market for delivery-dependent urban areas. Tevva supports its current product with a unique and purpose-built, commercial-grade electric battery system, and its future product portfolio is being developed to include a proprietary hydrogen range-extender technology, which delivers a differentiated and sustainable dual-energy solution. Tevva’s existing 110,000-square-foot EV manufacturing facility in Tilbury, Essex, would be complemented by ElectraMeccanica's recently-commissioned 235,000-square-foot facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the UK, European and US markets.
David Roberts, current Director of Tevva and anticipated incoming Executive Chairman, said: “Since Tevva's founding more than ten years ago, we have focused our engineering and product development capabilities on developing a portfolio of zero-emission commercial vehicles that have generated significant customer interest. Our vehicles have undertaken more than 300,000 miles of testing and operating experience in real-world conditions by demanding fleet operators. We are excited to merge with ElectraMeccanica and accelerate the growth of the combined company. Throughout the process, we have been impressed with ElectraMeccanica's management team and strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market.”
Susan Docherty, Chief Executive Officer of ElectraMeccanica, added, “We are incredibly excited to partner with Tevva given their unique engineering expertise in an essential segment of a large and growing market. We believe this is the right time and Tevva is the right partner with which to pivot from consumer vehicles to commercial vehicles and respond to commercial fleet customer demand for superior, reliable and cost-efficient trucks. The complementary operations of the two companies and our similar values and mission give me complete confidence we can jointly create significant shareholder value. Tevva is extremely well positioned in the U.K. and European market and our world-class manufacturing facilities, combined experienced senior executive team and balance sheet will help take our combined company to the next level.”
Steven Sanders, Chairman of the ElectraMeccanica Board of Directors, added, “By partnering with Tevva, we are providing our shareholders with a unique opportunity to participate in the accelerated and technology-driven growth prospects of the combined company in ways that also logically extend and leverage ElectraMeccanica’s existing assets and strengths.”
Since its founding in 2013, Tevva has focused on providing innovative zero-emission technology solutions for the urban delivery market. Tevva targeted this market given its size, rapid growth rate and its impact on the environment. Commercial vehicles, which stop frequently and largely operate in urban areas, are a significant source of greenhouse gas emissions. Transportation is one of the largest contributors to CO2 emissions globally, and medium- and heavy-duty vehicles account for 22 per cent of the transportation industry’s emissions. While many fleet operators recognize the benefits zero-emission vehicles deliver, they also need reliable and cost-effective solutions. Tevva’s products have demonstrated their reliability and ability to provide customers with a compelling return on investment. Tevva has built a commercial vehicle ecosystem alongside its technical partners, including strategic investor Bharat Forge, with which it has worked with since 2018, to tailor its products to the needs of its customers accordingly.
Upon the closing of the proposed transaction, ElectraMeccanica shareholders will own 23.5 per cent of the combined company and Tevva shareholders will own 76.5 per cent of the combined company on a fully diluted basis. The combined company expects to have a cash balance of approximately $70 - 80 million, with debt of approximately $26 million.
The combined company will operate as Tevva, Inc., and is expected to be domiciled in Delaware. It is anticipated that the combined company and its shares will trade on The Nasdaq Capital Market, subject to the receipt of all applicable Nasdaq approvals.
