The Workhorse Group have officially let go of their Surefly and Horsefly to Moog Inc
Workhorse Group, a US manufacturing company dedicated to manufacturing electrically powered delivery and utility vehicles, have sold the assets for their trademarked SureFly eVTOL to Moog Inc as well as all related hybrid electric power system technologies. The two transactions, for the SureFly and HorseFly, were finalized on October 1, 2019, with the closings taking place on November 27, 2019. According to Workhorse CEO Duane Hughes:
Building strong relationships through partnerships and transactions with world-class operators like Moog has always been a key area of focus for our company. In selling SureFly, we have been able to monetize a secondary asset, which will provide us with additional working capital for our core business, which is the manufacturing of electric last-mile delivery vehicles.
In a second separate transaction, the company also entered a joint venture with Moog Inc concerning Workhorse’s HorseFly “last mile delivery” Aerial System. Under the new agreement, Workhorse and Moog will each own 50% of the equity interests in the newly formed joint venture. Workhorse will contribute assets and material related to the HorseFly, while Moog will contribute complementary assets, intellectual property (IP) and other related technology. According to Workhorse, the purpose of the new joint venture is for the purpose of sharing and advancing technology and intellectual properties related to the development of unmanned aerial systems, or UAS.
On the new joint venture, Hughes said:
Through our HorseFly [Joint Venture], we’re looking forward to taking another existing Workhorse technology and leveraging the experience and resources of an established enterprise to tackle new markets and create outcomes there are greater than just the sum of the parts.
For additional details regarding the transactions, please reference the Form 8-K filed with the U.S. Securities and Exchange Commission on December 4, 2019.
Why it’s important: With Workhorse Group having monetized their assets in the SureFly and HorseFly, Moog Inc. will now have a chance to see if the SureFly and HorseFly will hold any promise in the aviation industry. Workhorse previously predicted that future applications of the SureFly could be in “precision agriculture, urban commutes, emergency response, military, and more.” Moog Inc. will now have the chance to incorporate the SureFly into these potential fields, while the Cleveland-based company will return to the design and manufacturing sector rather than the aviation sector.