In an interesting take on incubators that grow local companies with the aim of adding to the local ecnomy, a global company acquired a start up company as part of its growth strategy with the company remaining local.
Emerald Automotive of Hazelwood, Mo. was acquired last week by Chinese automotive giant Geely Holdings Group.
Geely Group, which owns brands including Geely Auto, Volvo Cars and the London Taxi Co., announced plans to invest a minimum of $200 million over the next five years in the development of sustainable, low-emission vehicles for the global market using Emerald Automotive's technological advancements. A management team for Emerald Automotive, an electric vehicle start-up company, will oversee the development of this new green technology in Hazelwood.
"Geely Group's acquisition of Emerald Automotive illustrates the important role the Missouri Technology Corporation plays in growing the entrepreneurial community in the Show-Me State," said Mike Downing, director of the Missouri Department of Economic Development.
The Missouri Technology Corporation (MTC) provided financing to Emerald Automotive through a $2 million High-Tech Industrial Expansion loan. An additional $3 million in financing has been provided by the City of Hazelwood. Geely Group will maintain Emerald's existing loan with the MTC and the City of Hazelwood.
MTC's High-Tech Industrial Expansion program is a component of the Missouri IDEA Funds, designed to accelerate private capital investment in Missouri-based startup companies and to significantly increase MTC's targeted bioscience and high-tech clusters. Its investment portfolio consists of 48 Missouri startups including Confluence Life Sciences, EternoGen, and Proviera Biotech. MTC's IDEA Fund investments in these companies have allowed them to raise over $90 million in additional private capital.