The Dec. 10 transaction immediately incorporates SmarTire’s assets into Bendix’ electronic business unit, and proceeds from the sale will be held in a third party account subject to SmarTire obtaining shareholder consent at a meeting to be held in March 2009. The company says it expects to apply all, or a substantial proportion, of the proceeds from the sale against its debt obligations. Following the transaction, SmarTire will change its name to TTC Technology Inc.
"The past year has presented many challenges for SmarTire and our goal of growing the business to become self sufficient," stated Dave Warkentin, president and CEO. "Market conditions created delays in the implementation of our products as well as new TPMS programs being pursued with key customers. The adverse effect that this caused on our revenues resulted in the continued requirement for debt financing, which became impossible to secure due to recent economic conditions as well as the company’s debt load. This transaction is the result of an exhaustive process that was employed to ensure that maximum value was received for the assets of the company."
Bendix Commercial Vehicle Systems develops and supplies active safety technologies, air brake charging, and control systems and components for commercial vehicles throughout North America under the Bendix brand name. The Ohio-headquartered company employs more than 2,000 people. (Tyres & Accessories/Staffordshire, U.K.)