Electric delivery van company Electric Last Mile Solutions is set to go public through a SPAC merger with Forum Merger III.
The deal values the company at $1.4 billion. Forum Merger III shareholders will own 17.6% of the new company. Electric Last Mile will trade under the ticker “ELMS” on the NASDAQ.
The Electric Last Mile team includes founder and chairman Jason Luo, who was previously the chairman and CEO of Ford Motor’s China business. Founder and CEO James Taylor worked for General Motors for more than 30 years, holding roles that included the president of Cadillac and CEO of Hummer. Taylor is also the former chairman and CEO of Workhorse Group.
Electric Last Mile is set to launch the Urban Delivery Van in the third quarter of 2021. This could be the first electric Class I commercial vehicle to come to market.
The vehicle will have the same price as gas vehicles and also have 20% more cargo space, which could make it attractive to delivery companies.
The company has more than 30,000 pe-orders from customers, which include leading brands and some of the largest fleet managers in the country. The orders represent over $1 billion in revenue.
Electric Last Mile named Walmart, FedEx, Ryder System, Ikea, Penske Automotive Group, and Hertz Global Holdings as customers. The company is using a former Hummer plant in Indiana that has been retrofitted for electric vehicle production.
The North American e-commerce market has grown to $1 trillion and created a need for new, low-cost Class I vehicles, according to the company.
The company expects to have revenue of $122 million in fiscal 2021 and $613 million in fiscal 2022. Electric Last Mile sees revenue growing at a compounded annual rate of 123% from 2021 to 2025, hitting a total of $3 billion by 2025.
Units sold are seen growing from 4,000 to 83,000 by the year 2025.
The company is planning on launching a Class 2/3 Urban Utility Van in 2022. This product would compete with Workhorse, Rivian, and Ford. In 2023, Electric Last Mile is planning on launching a new vehicle for the China and European markets.
This story originally appeared on Benzinga.
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