BGL Announces the Merger of Lordstown Motors Corporation with DiamondPeak Holdings Corporation in a Transaction Valued Over $1.6 Billion

Rhea-AI Summary

Brown Gibbons Lang & Company announced the merger between Lordstown Motors and DiamondPeak Holdings Corporation, valued at $1.6 billion. This merger aims to create an entity listed on NASDAQ under the symbol RIDE. The merger will provide Lordstown Motors with $675 million in gross proceeds to fund production of its electric pickup truck, the Endurance, designed for commercial fleets. The Endurance boasts impressive specifications, including 250 miles per charge and 7,500-pound towing capacity, while significantly reducing the total cost of ownership.

Positive

• Merger valued at $1.6 billion enhances capital for production.
• Provides $675 million in gross proceeds for launching the Endurance.
• Investment from GM and leading institutional investors increases credibility.

Negative

• None.

CLEVELAND, Nov. 2, 2020 /PRNewswire/ -- Brown Gibbons Lang & Company (BGL) is pleased to announce the merger of Lordstown Motors Corporation (Lordstown Motors), an original equipment manufacturer (OEM) of the world's first all-electric pickup truck serving the commercial fleet market, with DiamondPeak Holdings Corporation (DiamondPeak), a special purpose acquisition company (SPAC). BGL's Industrials team served as financial advisor to Lordstown Motors. The combined entity will trade on the NASDAQ exchange under the ticker symbol "RIDE."

The $1.6 billion transaction provides Lordstown Motors with $675 million of gross proceeds

Lordstown Motors is an Ohio-based OEM that designs and manufactures all-electric, light duty fleet vehicles. In November 2019, the company acquired the Lordstown Complex, formerly a General Motors Corporation (GM) factory. Lordstown Motors will use the site to build the Endurance™, its flagship product believed to be the industry's first fully-electric full-size pickup truck designed specifically to serve the commercial fleet market.

The electric powertrain Endurance delivers the equivalent of 75 miles per gallon, an estimated 250 miles per charge, and an anticipated 7,500-pound towing capacity, all of which has been systematically engineered and competitively priced for large commercial fleets. The Endurance is equipped with hub motors and software in a seamless integration that delivers a "motor and mind" in each wheel. This simplicity results in just four moving parts in the drivetrain, as compared to more than 2,000 in vehicles utilizing a traditional internal combustion engine. The design significantly increases reliability, maximizes performance, and reduces total cost of ownership.

The $1.6 billion transaction provides Lordstown Motors with $675 million of gross proceeds that will be used to fund production of the Endurance and its innovative in-wheel electric hub motor design. The financing and concurrent listing was achieved through a merger with the DiamondPeak SPAC, and a $500 million fully committed PIPE, which includes $75 million of investments by GM, in addition to investments from leading institutional investors such as Fidelity Management & Research Company LLC, Wellington Management Company LLP, Federated Hermes Kaufmann Small Cap Fund, and funds and accounts managed by BlackRock, among others.  

This transaction furthers BGL's deep experience in — and ongoing commitment to — the Automotive and Industrial Technology sectors, and is the firm's most recent transaction within the Electric Vehicle (EV) space. BGL's professionals and affiliates have completed more than 100 transactions in the automotive sector globally.

About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate offices in Chicago, Cleveland, Denver, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown Gibbons Lang & Company Securities, Inc., an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com. 

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SOURCE Brown Gibbons Lang & Company

FAQ

What is the significance of the merger between Lordstown Motors and DiamondPeak?

The merger, valued at $1.6 billion, will enable Lordstown Motors to access $675 million in gross proceeds to fund production of its electric pickup truck, enhancing its position in the commercial fleet market.

When will Lordstown Motors start trading under the ticker symbol RIDE?

The combined entity from the merger will begin trading on the NASDAQ under the ticker symbol RIDE following the completion of the merger.

What are the key features of the Lordstown Motors Endurance truck?

The Endurance is designed for commercial use, offering 250 miles per charge, 7,500-pound towing capacity, and a unique in-wheel electric hub motor design for improved reliability.

What investors are involved in the financing of the Lordstown Motors merger?

The merger includes a $500 million fully committed PIPE, with investments from General Motors and notable investors like Fidelity and BlackRock.