RICHMOND, B.C. — SmarTire Systems Inc. has signed a term sheet to sell its business and related assets to Bendix Commercial Vehicle Systems (CVS) LLC, the North American affiliate of Munich, Germany-based Knorr-Bremse AG. Terms of the deal were not disclosed.
The term sheet is subject to certain material terms and conditions prior to completion of the proposed transaction, including negotiation and completion of a mutually acceptable definitive sale and purchase agreement; approval of the transaction by SmarTire’s board of directors; and approval of the transaction by SmarTire’s debtholders, including release of all debts and claims against SmarTire’s assets. The acquisition by Bendix CVS is also subject to corporate approvals.
SmarTire expects to apply all, or substantially all, of the proceeds from the proposed sale against its debt obligations.
Bendix CVS expects to incorporate the SmarTire business into its existing electronics business unit.