ElectraMeccanica, a designer and assembler of electric vehicles, and Tevva, a pioneer in electric medium- and heavy-duty commercial vehicles, have entered into a Proposed Merger Agreement.
The merger is intended to create a market leader in Zero-Emission Commercial Vehicles, focusing first in the United Kingdom, then in Europe and the United States.
The combination with ElectraMeccanica is expected to accelerate Tevva’s expansion in the electric medium- and heavy-duty commercial vehicle sector.
The combination with ElectraMeccanica is expected to accelerate Tevva’s growth in the UK and Europe, and speed its entry into the U.S. market by leveraging ElectraMeccanica’s U.S. expertise and manufacturing facility.
Tevva recently commenced deliveries of its 7.5t battery-electric truck to commercial fleet customers focused on urban delivery – a critical and high-growth segment of the overall commercial truck market for delivery-dependent urban areas.
Tevva supports its current product with a purpose-built, commercial-grade electric battery system, and its future product portfolio is being developed to include a proprietary hydrogen range-extender technology, which delivers a differentiated and sustainable dual-energy solution.
Tevva’s existing 110,000ft2 EV manufacturing facility in Tilbury, United Kingdom, would be complemented by ElectraMeccanica’s recently commissioned 235,000ft2 facility in Mesa, Arizona, which is expected to enable the combined company to scale its production to serve the U.K., European and U.S. markets.
“Since Tevva’s founding more than ten years ago, we have focused our engineering and product development capabilities on developing a portfolio of zero-emission commercial vehicles that have generated significant customer interest,” said David Roberts, director of Tevva.
“Our vehicles have undertaken more than 300,000 miles of testing and operating experience in real-world conditions by demanding fleet operators. We are excited to merge with ElectraMeccanica and accelerate the growth of the combined company.
“Throughout the process, we have been impressed with ElectraMeccanica’s management team and strongly believe that ElectraMeccanica’s complementary assets, skills and capital will further enhance our advantages in this large and rapidly growing market.”
Susan Docherty, chief executive officer of ElectraMeccanica, added, “We are incredibly excited to partner with Tevva given their unique engineering expertise in an essential segment of a large and growing market.
“We believe this is the right time and Tevva is the right partner with which to pivot from consumer vehicles to commercial vehicles and respond to commercial fleet customer demand for superior, reliable and cost-efficient trucks.
“The complementary operations of the two companies and our similar values and mission give me complete confidence we can jointly create significant shareholder value. Tevva is extremely well positioned in the U.K. and European market and our world-class manufacturing facilities, combined experienced senior executive team and balance sheet will help take our combined company to the next level.”
The proposed transaction is expected to close in the fourth quarter of 2023.
