Smith Electric (UK) ownership transfers to American subsidiary

Smith Electric Vehicles (UK) is being amalgamated into a single entity after its parent company sold the majority stake of the UK business to its US counterpart.

Tyne and Wear-based Tanfield Group has sold 51% of its Smith Electric Vehicles (UK) share to Smith Electric Vehicles US (SEVUS) for approximately £9.7m.

SEVUS was granted a license by Tanfield to trade in the US in 2009. Darren Kell, CEO of Tanfield Group, says directors of Tanfield Group felt consolidation of Smith Electric Vehicles (UK) with its associate company to create a single, larger US-based business, would be in the best interests of shareholders, "particularly in light of the plans that SEVUS management have for the combined business".

Bryan Hansel, CEO of Smith Electric US, says the sale signals a bright future for the electric commercial vehicle industry. "The unification of Smith Electric Vehicles will create operational efficiencies and market synergies that will make Smith more financially sound and productive," he adds.

Smith Electric Vehicles has been producing zero-emission battery-electric CVs since the 1920s, and more than 5,000 vehicles are maintained across the UK.