RICHMOND, British Columbia, Canada --- SmarTire Systems Inc. announced it has agreed to sell its business and related assets to Bendix Commercial Vehicle Systems LLC, the North American affiliate of the Munich, Germany-based Knorr-Bremse Group.
Bendix Commercial Vehicle Systems, a member of the Knorr-Bremse Group, develops and supplies active safety technologies, air brake charging, and control systems and components under the Bendix brand name for commercial vehicles throughout North America. SmarTire has developed advanced wireless sensing and control systems under the SmartWave trademark.
The transaction, scheduled to close Dec. 10, will immediately incorporate the company's assets to become a part of the electronics business unit of Bendix. The move will complement the other leading safety technologies such as the Bendix ESP Electronic Stability Program and Bendix Adaptive Cruise Control.
Proceeds from the sale closing will be held in escrow subject to SmarTire obtaining consent of its shareholders at a meeting to be held in March 2009. SmarTire expects to apply all, or nearly all, 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," said 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 affect 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."