Envirotech Vehicles Inc. has acquired Maddox Industries, a provider of government contracting solutions based in Puerto Rico. This strategic partnership is set to enhance Envirotech’s capabilities in U.S. manufacturing and logistics, delivering a multimillion-dollar revenue stream from government contracts over the next three years while creating U.S.-based manufacturing jobs.
“Maddox Industries will provide predictable and substantial revenue that will strengthen our financial position,” says Phillip Oldridge, CEO of Envirotech. “With their expertise in electric vehicle transportation — including military vehicles, U.S. Postal Service first- and last-mile delivery needs, and school bus sales — we are uniquely positioned to meet the growing demands of the electric vehicle market. This acquisition will also enable us to realize large employment tax credits as we rapidly ramp up our workforce.”
Maddox Industries has successfully supported over a billion dollars in U.S. government contracts involving manufactured products for prime defense contractors. This acquisition includes a three-year contract manufacturing agreement to be executed at Envirotech’s 580,000-square-foot facility in Osceola, Arkansas, expected to create over 250 jobs in the region.
“This partnership grants us access to Envirotech’s vehicle technology supported by their impressive manufacturing logistics hub, ideally located along key transportation corridors,” says Jason Maddox, founder of Maddox Industries. “Envirotech’s expansive facility allows us to develop products for the first responder market, including electric ambulances and police vehicles, as well as capitalize on our school consortium market, promoting energy-efficient and zero-emission school buses.”
The acquisition enhances Maddox’s third-party logistics contracts and allows for accelerated operational testing of battery-powered heavy lift drones for defense, logistics and agriculture. The facility’s multi-modal access to rail, highway and barge via the Mississippi River facilitates expedited delivery to government stockpiles. Available space under roof, as well as surrounding acreage, enables the construction of vehicle test tracks in addition to air testing zones for the battery-powered heavy lift drone program Maddox has under operational testing and evaluation.
“Maddox’s expertise in U.S. manufacturing and government contracting is complemented by Envirotech’s capabilities in electric vehicle technology, battery systems, EV charging networks and the capability of monetizing carbon credits,” adds Maddox. “Together, we can help fulfill the U.S. Postal Service’s goal of deploying 66,000 zero-emission logistics vans by 2030 and help enhance the Humvee hybrid modernization program.”
Terms of the transaction provide for the issuance of 3,100,000 shares of common stock to the owner of Maddox Industries, as well as the conditional payment of $1 million in cash upon the collection of the same amount of Maddox’s outstanding accounts receivables within 180 days after the closing.