Envirotech Vehicles Inc. (Nasdaq:EVTV) of Osceola has entered into a preliminary agreement to acquire Maddox Defense Inc., a government contractor, supplier and manufacturer.
As part of the "term sheet" agreement, Envirotech would acquire a majority stake in Maddox via a share exchange and cash transaction whereby Envirotech shares and common stock and a promissory note in the amount of $11.4 million would be exchanged for 52% of the shares of common stock of Maddox Defense, which is headquartered in Conroe, Texas.
The possible deal comes on the heels of the Biden administration’s announcement Wednesday of proposed auto emissions standards that would be the strictest in U.S. history. The emissions limits could require up to 67% of all new vehicles sold in the U.S. by 2032 to be electric.
Envirotech did not respond to Arkansas Business interview requests.
In a news release, Envirotech’s Chief Executive Officer Phillip Oldridge said the transaction “positions us to be the go-to provider for the federal government’s growing demand for sustainable transportation.”
“This combination aligns with our vision of building a strong presence in the government contracts sector and providing domestically manufactured products,” Oldridge said. “We believe Maddox’s experience in government trucking and logistics and its established customer base will provide a significant advantage for us in expanding our business in the sector.”
Envirotech’s nine-member board of directors would include three spots for representatives from Maddox should the deal go through.
