Green Automotive Company Acquires Newport Coachworks Inc.
Newport Coachworks Inc. to build clean diesel and CNG busses in new facility in California
NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- Green Automotive Company (OTC:GACR) today announced it has signed a definitive agreement to acquire Newport Coachworks Inc. ("NCI"). The business will be run by Carter Read, an industry leader in the bus and limo manufacturing business in North America.
GAC will acquire 100% 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."
About Green Automotive Company : Green Automotive Company is a U.S. public company involved in the Conversion, Import and World-wide Distribution of Eco-friendly vehicles. The Company is presently planning to bring All-Electric and other Eco-friendly vehicles into the United States market through a combination of converting piston engine vehicles and importing existing EVs. The Company is currently involved in assessing a number of All-Electric and alternate fuel vehicles including an All-Electric Intra-City and Municipal Mass Transit Bus and School Bus, for introduction to the U.S. market. GAC recently acquired Liberty Electric Cars Limited, a UK-based company that designs, develops, manufacturers and markets electric vehicle technologies for use in its own converted vehicles and for sale to OEMs for incorporation into their production. It provides a full aftermarket program to electric vehicle users to ensure the longevity of their vehicles and has partnership arrangements in other European countries. The Liberty team can count on over 200 man years of experience in the Automotive industry and specifically 70 plus man years in the EV sector covering some 2,500,000 miles. Green Automotive Company maintains its Corporate Office in Newport Beach, California. Green Automotive Company shares are traded on the OTC Market Tier--OTC Pink Current under the symbol "GACR." For more information visit www.usaelectricauto.com or write to firstname.lastname@example.org.
Safe Harbor Statement - This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Exchange Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Green Automotive Company incorporates by reference its disclosure and financial statements posted on www.otcmarkets.com, and does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
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