Life EV has completed the acquisition of Rad Power Bikes, rescuing the once-troubled e-bike company and setting a new course for its future. The Florida-based company now controls Rad Power Bikes’ brand, intellectual property, inventory, and specific operating assets. Life EV plans to maintain the Rad Power Bikes name in the US market while aiming to expand to select key markets.
As part of the acquisition, Life EV has pledged to honor warranties and gift cards purchased before the sale, providing reassurance to existing customers. Importantly, Life EV announced it will begin manufacturing new bikes in the United States. The company will employ a Foreign Trade Zone (FTZ) structure for production, allowing it to efficiently source parts globally while taking advantage of domestic customs procedures.
This acquisition comes after a challenging period for Rad Power Bikes. In December, the company filed for Chapter 11 bankruptcy following a Consumer Product Safety Commission warning urging customers to stop using certain e-bike batteries due to fire risks. Rad had previously indicated it could not afford to recall the batteries, compounding its difficulties.
Adding to the troubles, a fire broke out in a Rad Power Bikes warehouse in Huntington Beach, California, less than two months after the battery warnings. The incident occurred while the store was closed and is still under review by local authorities. Despite these setbacks, Life EV sees value in Rad’s contribution to the e-bike market and aims to build on its legacy.
Rob Provost, CEO of Life EV, stated that respecting the heritage and customer trust Rad has built is central to the acquisition. Looking ahead, Life EV hopes to leverage Rad Power Bikes’ established brand to create new opportunities and expand the reach of e-bike riders across the country, with a renewed focus on safety and domestic manufacturing.
