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Sevcon revs up vehicle electrification market growth with £10m Italian acquisition

Gateshead low carbon vehicle firm Sevcon has acquired privately-held Italian battery charging business Bassi, in a deal valued at over £10m.

Based near Bologna, Bassi designs and manufactures battery chargers for electric vehicles. Its product range includes fast charging technologies suitable for a wide range of electrification markets, including rapid, high voltage and high power sectors.

In 2015, Bassi generated approximately $16m (£11.2m) in annual revenues and was profitable. Bassi’s executive team will continue to manage the business. Bassi will operate as a division of Sevcon from its present facility and no changes in employment levels are anticipated.

The purchase price consisted of £7.5m in cash and 500,000 shares. The acquisition was funded with cash provided under a five-year term loan facility by the New York City branch of the Italian bank Monte dei Paschi di Siena

The acquisition allows Sevcon to expand its share of the high-growth vehicle electrification market by approximately 35%, as well creating the opportunity to cross-sell Sevcon products to Bassi customers.

Similarly, the firm can sell Bassi products through its own sales channel, including its joint venture in China.

Sevcon president and chief Executive officer Matt Boyle explained the importance of the acquisition.

Matt said: “This acquisition is an important milestone for Sevcon that we believe will accelerate our strategic growth and create significant long-term value for our stockholders.

“Battery charging and power management represent a rapidly growing sector of the electrification market that is highly complementary to Sevcon’s products.

“Customers regularly ask for charging solutions in conjunction with our new Gen5 motor controller line, especially in high voltage and high power applications. Bassi has world-class technology that offers an attractive integration opportunity with the Gen5.

“By offering customers a broader product portfolio that eliminates motor controller/battery charger interoperability concerns, we believe we can secure a greater share of the on-road and industrial electrification markets.”

Bassi chief executive officer Andrea Bassi said, “We believe this transaction is an opportunity to combine two outstanding and complementary organizations. Sevcon’s 50-plus year record at the forefront of electric vehicle control technology mirrors our more than 40 years of experience in battery charging and power management.

“Both companies are recognized globally for their commitment to innovation and customer service. Operating as part of Sevcon will enable Bassi to grow faster than it could on its own, while providing Bassi customers with greater access to Sevcon’s industry-leading control technologies. Most important, we are joining an outstanding company with a history of consistent achievement and extraordinary opportunities for future growth.”

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