Commercial vehicle manufacturer Tevva may soon merge with ElectraMeccanica, a designer and assembler of electric vehicles, with the target to accelerate Tevva’s expansion in the electric medium- and heavy-duty commercial vehicle industry.
In the near future, Tevva’s existing 110,000-square-foot EV manufacturing facility in Tilbury, United Kingdom, 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 U.K., European and U.S. markets.
Tevva and ElectraMeccanica: details of the merging process
Upon the closing of the proposed transaction, ElectraMeccanica shareholders will own 23.5% of the combined company and Tevva shareholders will own 76.5% of the combined company on a fully diluted basis. At closing of the proposed transaction, the combined company will operate as Tevva, Inc., and is expected to be domiciled in Delaware.
The combined company is expected to benefit from the acceleration of Tevva’s U.S. market entry, supported by the complementary platform, team, and assets of ElectraMeccanica, in addition to anticipated long-term reductions in material costs.
“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”, said David Roberts, current Director of Tevva and anticipated incoming Executive Chairman upon the closing of the proposed transaction.
“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”, added Susan Docherty, Chief Executive Officer of ElectraMeccanica.