Contact:David Calusdian Sharon Merrill Associates1 (617) 542 5300SEV@InvestorRelations.comMatt BoylePresident and CEO1 (508) 281 firstname.lastname@example.org
SOUTHBOROUGH, Mass., June 08, 2017 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV), a world leader in the design and manufacture of controls and battery chargers for zero emission electric and hybrid vehicles, today announced that the Company agreed to acquire Xuchang Fuhua Glass Co. Ltd's ("Fuhua Glass") entire 50% equity interest in Sevcon New Energy Technology (Hubei) Co., Ltd. ("Sevcon New Energy Technology"), for a purchase price of $5,000,000. The Company already holds a 50% equity interest in Sevcon New Energy Technology and, upon the consummation of the acquisition, Sevcon New Energy Technology will become a "wholly-owned foreign entity" under Chinese law. Sevcon also agreed to reimburse Fuhua Glass for the taxes paid by it in relation to the equity transfer in an amount not to exceed $1,173,675, as well as certain ancillary fees. "Our acquisition of the remaining 50 percent interest in Sevcon New Energy Technology will enable us to secure its full future profit stream and further capitalize on our existing opportunities in what is becoming the world's largest market for two-and four-wheel electric vehicles," said Sevcon President and CEO Matt Boyle. About Sevcon, Inc. Sevcon is a global supplier of control and power solutions for zero-emission, electric and hybrid vehicles. Its products control on- and off-road vehicle speed and movement, integrate specialized functions, optimize energy consumption and help reduce air pollution. Sevcon's Bassi Division produces battery chargers for electric vehicles; power management and uninterrupted power source systems for industrial, medical and telecom applications; and electronic instrumentation for battery laboratories. The company supplies customers from its operations in the U.S., U.K., France, Germany, Italy, China and the Asia Pacific region, as well as through an international dealer network. Learn more about Sevcon at www.sevcon.com.