Three Kiwi rich-list families and another former investor have stepped up to buy financially troubled electric motor bike maker Ubco.
The Mount Maunganui company was placed into receivership in January with the first receiver’s report released in March showing it owed $35.7 million.
There was a ray of hope, however, with receivers Stephen Keen and Ian Ruscoe, both of Grant Thornton, saying they were in talks with potential buyers.
Now, a deal has been done that will see the motorbike maker’s operations not just restarted, but now under majority local ownership.
Yesterday, Ubco global fleet and business development manager Grant Payton told the Herald that four of Ubco’s investors at the time of its collapse – the multinational Jubilee Investments (affiliate with Ubco’s contract manufacturer in Taiwan and the largest investor before the collapse) plus three Kiwi rich-listers
Keen said the deal was structured as an asset sale. He had no comment on the price and other details until the next receivers’ report, due late September.
The rich-listers, who hold a majority of the new company, are Sir Stephen Tindall (via his K One W One vehicle), Peter Goodfellow (via Avalon Asset Management) and the Holdsworth family (via Evander Management; the late John Holdsworth was the founder of New Zealand’s largest homegrown IT firm, the $1.5 billion-revenue Datacom; his family office retains a 55% stake, along with its myriad investments in start-ups).
The receivers were appointed by Goodfellow’s Avalon to claw back money owed through a General Security Agreement dated October 31, 2024.
Ubco fleet manager Grant Payton said 21 Ubco staff will work for the reborn company which, after a series of restructures, was down to 31 employees by the time of its receivership, from 109 last year.
“21 families will sleep a lot more comfortably tonight than they have for the past six months,” Payton said.
The 21 staff were kept on by the receivers to assist with servicing and spare parts.
The firm will stay at its Mount Manganui base, which will remain the hub for management, research and development and product design, while Taiwan’s TPK will return as the contract manufacturer.
Oliver Hutaff will return as chief executive.
The acquisition also includes Ubco’s Australian subsidiary, and Ubco’s New Zealand finance subsidiary, which services fleets on subscription, neither of which was placed into receivership.
Ubco, founded in 2015, sold more than 6000 of its electric motorcycles, but was caught in an endless series of capital-raising rounds as it scrabbled for cash.
Some insiders told the Herald the firm tried to expand too far and too fast.
What will be different this time around?
“It’s a much smaller team,” Payton said. “We won’t try to be everything to everyone in every market in the world.”
Ubco will still make single bike sales to urban hipsters, but the focus will be on fleets.
Shortly before its receivership, the firm sold 175 of its new “Duty” model to Australia Post, plus three to NZ Post in a more modest pilot. Domino’s was also a marquee customer.
“Still heavily engaged with Australia Post and other postal agencies. It wasn’t easy, but we kept those doors open,” Payton said.
Another change: soon after the receivership, Mark Phillips, managing director of Ubco Australia between March 2020 and September 2022, blamed the collapse in part on squeamishness about pursuing defence opportunities.
Payton said that is no longer the case.
“The military is absolutely a focus. Anywhere that need a utility bike.”
Farms and conservation agencies will also be points of focus.
Two new distributors have been appointed: Toad in Europe, which Payton is hoping will lead to fleet deals with French military and police, and The Utility Bike Company in the US, which has been formed by a former Ubco sales manager.
Grant Thornton’s Keen says he’s “delighted” with the outcome after a “robust sales process”.
“It’s fantastic to see a Kiwi business continue its legacy with key team members remaining – something that’s particularly challenging in today’s economic environment, where distressed businesses face significant loss of talent and even closure," Keen said.
While Utility Fleet Vehicles’ primary focus is on commercial fleets, individuals, including past purchasers from the former business, can still buy Ubco bikes and parts through the dealer network, Payton said.
Key fleet trials are under way and further updates on partnerships and product launches are expected in the coming months.
“Not many companies come through a process like this with their core team retained, their product refined, and their direction clearer than ever,” Hutaff said.
“That tells you a lot about the strength of what we’ve built and where we’re headed.”
According to an overnight Companies Office update Ubco’s new owner Utility Fleet Vehicles is 39.04% owned by Jubilee, 38.49% by Goodfellow’s Avalon, 12.61% by the Holdsworth family’s Avalon and 9.50% by Tindall’s K1W1.
Other investors at the time of the collapse who are not part of the new ownership include venture capital firm Global From Day One (GD1), which was the single largest local shareholder with its 21% stake, rich lister Peter Mafsen and retail investors who bought into Ubco via various crowdfunded equity raises on Snowball Effect who collectively held 4% of the company.
Staff were not owed any money.
The GSA covered $7.1m.
Ubco also owed Inland Revenue $836,545 in GST and PAYE.
The firm also received a $400,000 repayable grant from Callaghan Innovation.
Grant Thornton’s Keen won’t comment on how things washed up until the release of the second receiver’s report, expected late September.
Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.