01 Feb 2013 10:11
Update: PwC announces completion of the deal to save iconic London Taxi cab manufacturer
PwC announces the completion of a deal to sell the principal assets and trade of Coventry based London Taxi Company, manufacturer of the iconic London Black Cab. The acquisition is made by Geely UK Limited a newly-created subsidiary of the Geely parent company, Zhejiang Geely Holding Group ("Geely UK")
The deal includes retaining The London Taxi Company Head Office production and assembly plant in Coventry, the Mann & Overton dealership in London including its property, and all related dealership assets including those in Manchester and Edinburgh.
In addition, the goodwill and brand names within the London Taxi Company and the shares that Manganese Bronze held in a Shanghai-based joint venture are also included in the sale.
Most importantly, The London Taxi Company's stock of new and unregistered vehicles together with the entire fleet of used and demonstrator vehicles are also part of the deal with Geely UK.
Matthew Hammond, lead joint administrator and partner at PwC said:
“The last 3 months has seen an extensive search for a buyer, an accelerated successful programme to return the small number vehicles affected by last Autumn's recall quickly to cabbies in London and across the UK, and the readying of new vehicles for a return to the market.
"I am delighted to announce the completion of this deal which secures a future for the Coventry based manufacturer of the iconic Black Cab. It is great news for London Black cab drivers and operators, for the employees across the dealerships and in Coventry, and for the suppliers who have supported the business. All current MBH and LTI employees will be transferred to the new company.
"The Midlands automotive industry is benefiting once again from new overseas investment and the London Taxi Company can now move forward with the added boost of Chinese investment in this UK business.
"The business has been forced to operate through the administration without manufacturing new vehicles or selling vehicles into the markets. I am pleased that the business can now resume the manufacturing and sale of new and current vehicles and can re-established itself fully with new investment. The TX4 assembly line in Coventry is ready to emerge from the administration to continue manufacturing this British icon.
"I would like to extend our thanks to all whom have played a part in this rescue of The London Taxi Company including the management team and staff, UNITE as the representative of many of the employees, Transport for London and the London Taxi Drivers Association, the funders and particularly key suppliers."
Notes to Editors:
1. Geely holds a 19.9 per cent shareholding in MBH's UK–based business after an initial investment in 2006. The remaining 80.1% of shares are not part of the administration process and are therefore not part of the deal announced today.
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