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THE
VEHICLE PRODUCTION GROUP LLC (“VPG”) COMPLETES
$160
MILLION EQUITY FINANCING LED BY PERSEUS, L.L.C.
VPG TO
PRODUCE GASOLINE AND COMPRESSED NATURAL GAS
(“CNG”)
POWERED WHEELCHAIR ACCESSIBLE TAXI,
PARATRANSIT, AND CONSUMER VEHICLES |
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TROY, MICHIGAN, AUGUST 8,
2008 – The Vehicle Production Group LLC (“VPG”), a
designer, developer, and marketer of specialty vehicles
designed to meet the needs of the taxi fleet market,
commercial and municipal paratransit markets, and the
consumer retail market in North America for individuals
with a mobility disability, has completed an equity
financing of $160 million. The financing was led by
Perseus, L.L.C. (“Perseus”), a merchant bank and private
equity fund management company.
VPG was founded by Patton Corrigan and Marc Klein in
2006, with additional funding provided by Three Seasons
Capital, a venture firm led by Fred Drasner. This early
investment allowed VPG to assemble its management team,
design and engineer the vehicle, develop a prototype,
and line up manufacturing and assembly suppliers.
Proceeds from the financing will be used for continued
vehicle engineering, production tooling, vehicle testing
and validation. Vehicle production launch is projected
for the first quarter of 2010.
Fred Drasner, Chairman of VPG and Three Seasons Capital
stated, “In the most difficult capital market conditions
in recent history, we are pleased that Perseus and our
co-investors have recognized the excellent work done by
our talented team, led by Mark Hogan, our CEO, the
strong demand for our vehicles, and the strength of our
strategic partnerships. Their commitments will provide
the resources needed by VPG to move into production.”
VPG is working with General Motors through its
on-highway integrator Powertrain Integration LLC.
Marketing, technical, and infra-structure logistical
support for the CNG model will be provided by Clean
Energy Fuels Corp., founded by T. Boone Pickens, both of
whom are also investors in VPG. The vehicle will be
assembled by AM General LLC, in Mishawaka, Indiana, and
will employ a classic front-engine, rear-wheel drive
architecture which includes a durable body-on-frame
structure. Vehicle access is compliant with the vehicle
requirements of the Americans with Disabilities Act. The
vehicle includes an integrated automatic ramp that will
provide quick and easy access for individuals who use
wheelchairs, motorized scooters and other mobility
devices. Originally introduced as the “Standard Taxi”,
VPG’s vehicle has undergone design and functional
enhancements based on input from the marketplace.
VPG also has marketing relationships with MV
Transportation (“MV”), the largest private provider of
paratransit services and the largest privately-held
transportation contracting firm in the United States,
and The Motion Group of Companies (“MGC”) in Canada,
under which MV and MGC will sell vehicles into municipal
and commercial paratransit fleets. It is anticipated
that the consumer model of the vehicle will be marketed
through existing automotive dealers who will also
provide vehicle preparation, delivery and service.
Perseus, L.L.C. is a merchant bank and private equity
fund management company headquartered in Washington
D.C., with an office in New York and an affiliate office
in Munich. Since its inception in 1995, Perseus has
invested in numerous buyout and growth equity
transactions in the United States, Canada and Western
Europe. Perseus manages seven investment funds with
capital commitments totaling approximately $2.0 billion.
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