SEATTLE (BRAIN) — Life Electric Vehicles Holdings Inc. is expected to acquire Rad Power Bikes' assets for $13.2 million, outbidding four other companies during an auction for the e-bike brand that declared Chapter 11 bankruptcy protection last month.
Based in Deerfield Beach, Florida, Life EV agreed to acquire Rad Power's assets for $13,276,102 in cash. After accounting for liabilities, the total purchase price is $14,926,706. Retrospec is the backup bidder with a bid of $13 million. (Retrospec is the DBA for Xander Bicycle Corporation as listed in the U.S Bankruptcy Court Eastern District of Washington document.) The acquisition is expected to close on Feb. 13 and no later than Feb. 27.
"As part of the bankruptcy process, Rad Power Bikes conducted an asset auction late last week," a Rad Power spokesperson said. "The auction resulted in a successful bid, along with a backup bid, for the purchase of certain Rad assets. Any proposed transaction remains subject to court approval, and the sale is not final at this time."
In 2023 Life EV acquired the Serial 1 e-bike brand, which was founded by Harley-Davidson. Serial 1 was developed by Harley-Davidson and then spun off into a separate division in 2021.
Established in 2018, Life EV has a factory-direct showroom and offers test rides by appointment. All e-bikes are sold direct-to-consumer and built at its 31,000-square-foot facility in South Florida. Life Electric Vehicles models range in price from $1,999-$2,399. Its website currently shows all models sold out.
Less than a month before filing for bankruptcy, Rad Power said it could not afford a recall on some of its older lithium-ion batteries that the Consumer Product Safety Commission declared unsafe.
The CPSC issued the warning because it said some batteries can unexpectedly ignite and explode, especially when the battery or harness has been exposed to water and debris. Rad Power Bikes did not agree to "an acceptable recall," according to the CPSC, and the brand told the agency that given its financial situation, it can't offer replacement batteries or refunds to consumers.
