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Electric bike maker bought in £1m deal
One of the UK's biggest makers of electric bikes was snapped up yesterday for just under £1m.
Bath-based Powabyke has been bought by Metroelectric, an investment company specialising in electric cars, vans and scooters for use in cities.
Metroelectric said the deal would "substantially broaden" its product offering in a fast-growing market.
Industry experts predict European sales of 2.5 million electric bikes this year – compared with 550,000 in 2008 – as city dwellers look for cheaper and environmentally friendly alternatives.
Powabykes take around five hours to charge and cover up to 15 miles, although the range can be increased by pedalling. The X-24 model sells for 995.
Powabyke was set up in 1999 and has sold more than 30,000 bikes through a nationwide network of around 300 dealers.
The company was hit by the downturn before being bought out of administration in October by a group of corporate and individual investors which sold the business on to Metroelectric.
Metroelectric is paying for the deal with 120,000 in cash and the remainder with new shares in the business.
It has raised 200,000 from Chinese firm Wonder Auto Technology Group – a major global supplier to the car industry currently working on a range of electric vehicles. Metroelectric wants to develop Powabyke's operations in tandem with WATG to further expand its business in the key Chinese market.
Chairman Greg Collier said the deal represented a "unique opportunity".
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Wednesday 23 May 2012
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