Green Automotive Closes Blackhawk Manufacturing Acquisition

Green Automotive Company (OTCQB: GACR) has announced that it has closed its acquisition of California and Mexico-based Blackhawk Manufacturing Inc. and its affiliated companies for a value of $6 million of Green Automotive’s common stock at $0.05 per share, which equals 120m shares.

Blackhawk is a leading manufacturer 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. According to the company, 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).

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.”

Category: Featured, General Update, Green