Hear from EV Technology Group CEO Wouter Witvoet on the Acquisition: https://bit.ly/3zvEGcm
EV Technology Group (NEO: EVTG) (OTCQB: EVTGF) (DE: B96A) announces that it has entered into the Definitive Agreement to acquire leading British Tier 1 supplier and specialist manufacturer, Fablink Group Holdings Limited (“Fablink”)
- The transaction is valued at up to £38.8m with £29.5m to be paid in cash for 76% of Fablink and Fablink will have an option to sell the remaining 24% of Fablink for £9.3m in Common Shares of the Company.
Fablink is a leading UK manufacturing and engineering organisation with >C$110m in annual revenues and strong growth through its exposure to electric vehicle demand
- Fablink has ~750 employees across seven manufacturing sites, counting leading global OEMs amongst its client base
- Fablink recently launched Streamline Automotive to serve the explosion in electric vehicle assembly and manufacturing demand, emerging as a national leader in the sector
The acquisition creates synergies, commercial and cost saving opportunities to the consolidated Group
- Fablink Group is a strategic acquisition to bring engineering, supply chain, manufacturing and assembly expertise in-house, strengthening EV Technology Group’s commercial offering
- Fablink Group to retain leadership team, employees, facilities and global customer base, with Fablink Group CEO Richard Westley to be appointed as EV Technology Group’s Chief Operating Officer upon completion of the acquisition
- Fablink Group is the contract vehicle manufacturing & assembly partner of MOKE International, which recently released the Electric MOKE, and which EV Technology Group recently announced a definitive agreement to acquire up to 100% of its shares
TORONTO, Aug. 03, 2022 (GLOBE NEWSWIRE) — EV Technology Group Ltd. (the “Company” or “EV Technology Group”) (OTCQB: EVTGF, NEO: EVTG, DE: B96A), announces today the signing of a share purchase agreement with the shareholders of Fablink Group (the “Definitive Agreement”) to acquire 76% of Fablink Group Holdings ( “Fablink Group”), the leading British Tier 1 supplier and specialist manufacturer (the “Acquisition”) and a share exchange agreement (the “Option Agreement”) with certain shareholders of Fablink Group which provides them with an option to sell the remaining 24% of Fablink Group to the Company.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7782a12f-84ff-4ba2-ab0d-de015fcd13ca
The acquisition is a strategically important one for EV Technology Group, giving it access to Fablink’s world-class in-house manufacturing and engineering expertise. Since it was founded over 14 years ago, Fablink has built up a market-leading position as a Tier 1 supplier to the automotive, transport and off-highway sectors, counting leading global OEMs in its customer base.
Fablink Group is renowned for the supply of pressings and complex welded structures, cab assemblies, lightweight bonded aluminium chassis & structures, mixed material architectures, as well as niche and lower volume build for automotive and e-mobility brands. The Acquisition includes all seven Fablink manufacturing sites across the UK, and Streamline Automotive, a new division of Fablink Group that provides specialist low and medium volume electric vehicle manufacturers with turnkey clean build vehicle assembly capabilities. It is already the manufacturing partner of MOKE International, a company that has recently agreed to join EV Technology Group’s house of brands with the signing of a definitive agreement for EV Technology Group to acquire up to 100% of its shares, and who has recently introduced the Electric MOKE.
Under the terms set out in the Definitive Agreement, the Company shall pay (a) £29.5 million to certain shareholders of Fablink Group in exchange for 76% of the total issued and outstanding common shares (the “Purchased Shares”) and (b) £719,000 to acquire existing shareholder debt of Fablink Group. Furthermore, under the terms set out in the Option Agreement, certain shareholders of Fablink will maintain an option, for one year from the date of the Option Agreement, to sell the remaining 24% of Fablink Group in exchange for common shares of the Company (the “Common Shares”), subject to certain adjustments (the “Option”). The completion of the Acquisition and the Option and are subject to customary closing conditions, including any related financing, due diligence and approvals by the NEO Exchange. No finder fees are payable in connection with, and no change of control of the Company will result from the Acquisition. There can be no assurances that the Acquisition or the exercise of the Option will be completed as proposed, or at all.
The Acquisition is expected to close later in the year.
Richard Westley, CEO, and founder of Fablink Group will remain in his current position in the new structure and will also join the EV Technology Group executive team as Chief Operating Officer upon completion of the acquisition. Fablink will also retain its current leadership team, facilities and over 750 employees.
Richard Westley, CEO, and founder Fablink Group stated “There’s no doubt that EV Technology Group’s acquisition of Fablink is a fantastic fit. This Acquisition not only presents a superb blend of resource and capabilities, aligned to underpin EV Technology Group’s significant growth plans, but also gives Fablink Group a platform for significant future investment in our people, facilities & technology. The Acquisition allows us to accelerate the delivery of our strategies in support of our existing global OEM customers, as we continue on our mission of achieving operational excellence across our manufacturing sites, and also provides a platform to further develop the business as we look to support EV Technology Group’s own brands. This is a tremendously exciting step for Fablink and we are looking forward to an even brighter future as part of a larger group.”
Wouter Witvoet, CEO of EV Technology Group stated “This Acquisition is of huge strategic importance to the EV Technology Group. Having access to Fablink’s 750 world-class electric vehicle manufacturing and engineering experts in-house makes us more competitive, efficient, and agile for Fablink’s existing customers and our own future projects. On a personal note, I am also looking forward to working closely with Fablink’s founder and CEO Richard Westley who has built a remarkable world-leading business and will also be joining me at EV Technology Group to help steer the future success and growth of the entire group.”
About Fablink Group
Fablink Group, headquartered in Northamptonshire, is a leading British Tier 1 supplier of automotive structures and complete vehicle assemblies to some of the world’s leading OEMs in the automotive, transport and off-highway markets including Caterpillar, CNH, DAF, JLR, JCB, Mecalac, MOKE, Morgan, Nifty-Lift & Perkins.
Fablink Group is renowned for the supply of pressings and complex welded structures, cab assemblies, lightweight bonded aluminium chassis & structures, mixed material architectures, as well as niche and lower volume build for automotive and e-mobility brands. With depth and breadth of operations across six British sites, Fablink Group’s 500,0002 ft of manufacturing space is home to 750 highly skilled engineers and production staff.
At the heart of Fablink Group sits Fablink Technologies as an advanced engineering and technology hub providing engineering services through product development, prototyping, tooling design and build as well as a strong design for manufacture (DFM) capability to support Fablink Group’s customers. Fablink Technologies’ market-leading expertise delivers complete engineering engagement with customer engineering teams from initial concept, through prototyping to manufacture.
Streamline Automotive is a new division within Fablink Group, providing niche and low-volume clean build manufacturing for premium OEMs, specialist brands and e-mobility start-ups. Streamline E Mobility – the first division sub-brand – provides e-mobility companies access to turnkey manufacturing solutions for lightweight chassis, mixed-material architecture, and bonded aluminium structures. Streamline Panels and Assemblies is a well-established metal forming and fabrication business, creating exquisite hand-crafted bodies and assemblies.
EV Technology Group
EV Technology Group was founded in 2021 with a vision of electrifying iconic brands – and a mission of redefining the joy of motoring for the electric age. By acquiring iconic brands and bringing beloved motoring experiences to the electric age, EVT Group is driving the EV revolution forward. Backed by a diversified team of passionate entrepreneurs, engineers and driving enthusiasts, EVT Group creates value for its customers by owning the total customer experience — acquiring and partnering with iconic brands with significant growth potential in unique markets, and controlling end-to-end capabilities. To learn more visit: https://evtgroup.com/
EV Technology Group
CEO and Chairman of the Board
This news release contains forward-looking statements including, but not limited to, the Definitive Agreement, the Acquisition, the Option Deed and the Option, the acquisition of MIL, the terms of such transactions, closing conditions and regulatory approval, the appointment of Mr. Westley as Chief Operating Officer of EV Technology Group, and EV Technology Group’s plans, operations, expectations, and future actions. Often, but not always, these Forward-looking Statements can be identified by the use of words such as “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”, “planned”, “reflecting”, “will”, “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be achieved and similar expressions, including negative variations.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any results, performance or achievements expressed or implied by the Forward-looking Statements, including those factors discussed under “Risk Factors” in the annual information form and filing statement of the Company. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in Forward-looking Statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended.
Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are made as of the date hereof and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except where required by law. There can be no assurance that these forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
All information contained in this press release with respect to EV Technology Group and Fablink Group was supplied by the parties respectively for inclusion herein, and each party and its directors and officers have relied entirely on the other parties for any information concerning the other party. EV Technology Group has not conducted due diligence on the information provided by Fablink Group and does not assume any responsibility for the accuracy or completeness of such information.
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