Tuscan Holdings Corp, a New York SPAC (Special Purpose Acquisition Company) has taken Microvast public in a transaction that values the company at $2.4 billion.
Microvast is a leading provider of vehicle battery technology for all types of vehicles. The company claims its batteries have longer range, quicker charging and longer lifespan than its competitors. It had initial success with electric buses, especially in China. Its products operate in 160 cities in 19 countries.
The company was formed in Houston in 2006 by Yang Wu. Nominally, the company has its headquarters in Stafford where it has a 4,000 sq. ft. office. The main operations have been in Huzhou, China where the company has a manufacturing plant with 1.7 million sq.ft. Mr. Wu had previously founded a water treatment company in Huzhou that he sold to Dow Chemical in 2006.
Last year the company signed a contract to be the exclusive supplier of batteries to CNH Industrial, the parent company of Iveco, a leading commercial vehicle brand. The batteries will be manufactured in the company’s Berlin plant that was opened earlier this year. The company also has an R&D contract with BMW.
The company is pivoting to the US and earlier this year bought a 577,000 sq.ft. building on 82 acres in Clarksville, TN with production scheduled for 2022.
As part of the de-SPAC transaction, Oshkosh Corporation announced it would make a $25 million investment in Microvast. Oshkosh recently won a $480 million contract to replace the USPS mail trucks with a combination of electric and low-emission internal-combustion-engine vehicles.
CEO Wu appears to be based in Hawaii, according to his LinkedIn Profile. CFO Leon Zheng is based in Houston and is a Texas A&M graduate. Dr. Wenjuan Mattis, the Chief Technology Officer, is based in Orlando.
For 2020, the company had revenues of $107 million and an operating loss of $51 million. It is projecting revenues of $2.3 billion in 2025 with EBITDA margins of 20%. The transaction with Tuscan will leave it with $600 million. The company will use this to complete and/or expand all the manufacturing facilities.
The company will trade on the Nasdaq under the ticker symbol ‘MVST’.