Dubai, UAE, Feb. 04, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- ILUS International (OTC: ILUS): The Vehicle Converters LLC, known as TVC, is a Dubai-based $3mil dollar annual revenue business (Pre Covid) operating as a specialist manufacturer and converter of service vehicles, primarily Medical, Military, Police, Fire & Rescue response vehicles, usually small rapid response type vehicles. TVC has converted more than 8,000 of the most advanced vehicles for some of the biggest brands in the world and is listed on almost every major Preferred Supplier List in the Middle East and North African Market. Many of the leading governments globally have been researching the possibility of having joint first responders in a single vehicle, meaning 1 small vehicle arrives with multi trained multi-skilled responders instead of sending a Fire Truck, Ambulance and Police vehicle to a small incident, wasting taxpayers money. The TVC medical & police vehicle experience combined with Firebug’s patented fire technology would make a world-leading solution that would be very difficult for any competitor to compete with.
The management team at TVC is highly experienced and operates a good corporate governance system that fits strongly with the ILUS model. ILUS management believes that the strategic value of the acquisition will provide a return on this investment in a very short time. The FireBug & TVC factories will merge into one single facility during the second quarter of 2021, allowing consolidation, scale, substantial cost savings and skill enhancement. The acquisition was paid for in cash and restricted shares.
The revenue consolidation into the ILUS group is a building block and the strategic value is placed on the manufacturing capacity, skill sets and established routes to market. While FireBug already supplies to many top brands in the Middle East, the Acquisition of TVC will speed up the access to a huge customer base of almost every top brand in the Oil & Gas, Military, Civil Defense & Medical Sector in the Middle East and North Africa Market. TVC’s experience in the specialist vehicle market will allow the FireBug Group to expand their offering to customers in the rest of the world where TVC has not been active and FireBug is active in more than 20 countries. This gateway should bring exponential growth for both company’s core products and open the door to develop some new game changing products. In addition to the core products, TVC has developed a range of products that are non-core to the ILUS group, the margins are very attractive and utilize the same manufacturing process and the products have an outstanding customer base and strong cashflow, and would create another platform for EV sales later, so ILUS will continue to develop this cautiously and structure it in a way that could allow possible divestment in future and does not distract from the core focus of the group.
While TVC has strong manufacturing skills and IP, FireBug brings new more advanced, environmentally friendly, more cost-effective & longer lasting, lower maintenance & lighter-weight technologies. FireBug has its own Co-Polymer plastic vehicle body manufacturing technology and this will be introduced into the TVC products, replacing the old fashioned conventional GRP and Metal vehicle bodies with almost indestructible co-polymer bodies.
Importantly TVC has the assembly capability to scale up the production of the ILUS ERaptor for the region. TVC has been successful over the years, providing vehicle conversions under partnerships with OEM vehicle manufacturers for the Middle East Market and ILUS will look to develop this further.
Ultimately the TVC customer base in the region, who are mostly Blue Chip, Government departments and various agencies, are under immense pressure to move to EV. This opens the door for the ILUS EV sales. ILUS is heavily focused on the development of an expanded EV offering in the future. The majority of the sectors which ILUS Group target have not been modernized for decades so the demand for modernization way supersedes the supply.
The Middle East and North Africa Market (MENA) has a population of 580mil people and is undergoing extensive re-focus and huge investment moving away from oil dependency, creating the opportunity for change. The market is largely under-serviced with the products that TVC supply and naturally being a desert, water saving is vital, which supports the FireBug water saving technology. One example is Saudi Arabia, who is creating an entire new Region called NEOM, which is a 2 Trillion Saudi Riyals (+$500 Billion) development, the demand for ILUS & TVC products in the region is incredibly large. Nicolas Link, CEO of ILUS, says that he expects that the acquisition of TVC will allow the group to maximise the potential in the region and exponentially grow revenue far quicker than could be done organically. The operational cost savings and efficiencies have a tremendous added value to the group too, and the benefit of a well established and respected brand like TVC will no doubt enhance ILUS, the brand, and shareholder value.
Both companies look forward to integrating the businesses and expanding the ILUS business in the Middle East & North Africa.
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