Eco-friendly vehicles distributor Green Automotive (GAC) has entered into a binding agreement to purchase British automotive parts remanufacturing business Transhock.
Based in West Midlands, UK, Transhock is a re-manufacturer and distributor of vehicle parts and accessories.
This transaction will enable GAC to strengthen its position in vehicle parts recycling market. It will also help the company to extend and develop its range of remanufactured parts for electric vehicles, in the area of battery technology.
Following the transaction, Transhock managing partners David Davies and Derek Neale will remain with the business.
Green Automotive CEO Ian Hobday said that GAC through its Liberty E-Care business had already started the process of remanufacturing various EV parts.
"By bringing Transhock into the GAC team, we can add to their existing business our emerging electric vehicle parts business," Hobday added.
"By doing this we will gain economies of scale, improve turnaround time, expand our offerings and provide a finished product of a higher quality and better presentation. GAC will now focus on consolidating and integrating these businesses into our group paving the way for future growth."
Transhock reported circa $7m+ of revenues for the year ended 31 March 2013 (to UK GAAP), and was both profitable and cashflow positive. The transaction will be earnings accretive to GAC and was paid for with $1.8m in equity.
