SmarTire agrees to sell to Germany-based company
SmarTire Systems Inc. has signed a term sheet to sell its business and the related assets for an undisclosed amount to Bendix Commercial Vehicle Systems LLC, the North American affiliate of Munich, Germany-based Knorr-Bremse AG.
According to SmarTire, Bendix is expected to incorporate the business into its existing electronics business unit.
The term sheet is subject to certain material terms and conditions prior to completion of the proposed transaction, including the following:
* negotiation and completion of a mutually acceptable definitive sale and purchase agreement;
* approval of the transaction by SmarTire's board of directors; and;
* approval of the transaction by SmarTire's debtholders, which would include the release of all debts and claims against SmarTire's assets.
The acquisition by Bendix is also subject to corporate approvals.
SmarTire says it "expects to apply all, or substantially all, of the proceeds from the proposed sale against its debt obligations."