RIVERSIDE, Calif. Green Automotive Co. (GAC) has closed its acquisition of California and Mexico-based Blackhawk Manufacturing Inc. and its affiliated companies. The business was sold for a value of $6 million of Green Automotive’s common stock at 5 cents per share, equal to 120 million shares.
Blackhawk is a manufacturer of specialist composite materials with facilities in Bloomington, Calif., and Tijuana, Mexico, and generates annual sales of approximately $4.25 million and a profit of approximately $407,000 annually, 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 $2.5 million), 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 $1 million cash and $1 million worth of Green Automotive common stock. The property has an estimated value of $5.3 million.
Blackhawk has been supplying Green Automotive’s shuttle bus manufacturing business, Newport Coachworks, since it started operations in 2013. GAC says 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 (fiberglass) 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 and use 60 percent less resin, with virtually zero emissions when compared with more traditional techniques.
Commenting on the acquisition, 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, added, “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.”