DARWEN BUYS AND BECOMES OPTARE
The British Darwen Group, already owner of East Lancs coachbuilders and Leyland Product Development (LPD) which were acquired in August and November 2007, confirmed the take-over of Leeds coachbuilder Optare from Jamesstan Investments.
Jamesstan Investments bought the Leeds/Rotherham based Group earlier this year. Roy Stanley, managing director of Darwen has a substantial holding in both Darwen and Jamesstan and also in electric vehicle producers Smiths, part of the Tanfield Group. Darwen are paying £15.95m for Optare subject to approval by existing shareholders.
Darwen decided not only to buy Optare, but it is also going to change its own name to Optare Group plc. The company has also announced that in conjunction with the acquisition, and in order to implement the strategy for the enlarged Group, it is intending to raise £16m through the issue of 40million placing shares at a placing price of 40p. The company believe that the acquisition is a compelling fit with the group for the following reasons: comprehensive product offering; improved skills including an in-house design capability; improved after sales ability with national reach; reduced costs and improved operational performance; and enhanced geographic reach.
One of the goals is developing a range of hybrid vehicles; Optare is already well down the road with hybrid developments on the Solo, Versa and Tempo using the Allison and Traction Technology systems, LPD have already produced small electrically driven vehicles. Within the sphere of Roy Stanley's interests is Smiths Electric Vehicles, which has been producing electrically driven vehicles up to 10tonnes GVW for many years.
Optare was already engaged in negotiations for a new site and indeed was close to agreeing a deal with Leeds City Council to develop a new site not far from the existing Crossgates factory. Darwen said it was seeking a new location in the Darwen area.