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Arrival Group

Company

British developer of solutions that allow trucks and buses to significantly reduce hydrocarbon fuel consumption.

Owners:
UPS (United Parcel Service)
Sverdlov Denis Lvovich - 76,4%
Winter Capital Partners (WCP)
Hyundai Motor Company and Kia Motors Corporation
Net Profit $

Number of employees

Owners

+ Winter Capital Partners (WCP)

Main article: Electric vehicles (global market)

Performance indicators

2019

From Arrival's documents, it follows that in 2019 the company had no revenue, and net losses exceeded $48 million against $30.2 million a year earlier. The losses are largely due to the growing costs of product development, as well as taxation.

History

2022: Arrival electric vehicle developer Denis Sverdlov transports employees from Russia to Georgia

Electric vehicle developer Denis Sverdlov transports employees from Russia to Georgia

[1]

2021

Capitalization $8.7 billion

The salary of the CEO of Arrival is £600 thousand per year

In August 2021, the well-known annual salaries of Arrival executives, including founder and CEO Denis Sverdlov, became known. The latter, in accordance with the labor contract signed on September 14, 2020, receives £600 thousand a year from the company. More details here.

Access to the Nasdaq Exchange

On March 25, 2021, Arrival entered the Nasdaq exchange (ticker - ARVL), making the largest IPO in the history of British companies. The listing occurred through a merger with the American  CIIG Merger Corp, a special technical  company  (SPAC).

According to the results of the first day of trading on the Nasdaq exchange, Arrival shares fell 4.5% to $21.01. During trading, the fall reached 13%, and the quotation rate - $19.21.

At the time of the securities placement, Arrival's market capitalization amounted to $13.6 billion. The company intends to use the funds raised to increase the supply of vehicles and expand its global network of micro-factories.

Electric car developer Denis Sverdlov entered the Nasdaq exchange

Entering the exchange will allow the company to scale production, offering its product  to "an increasing number of cities and people,"  said   Denis Sverdlov, founder and head of Arrival. 

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We believe that soon all cars will be electric, because it is better for people, the planet and business,   "he added.
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According to Forbes, Denis Sverdlov's fortune after Arrival entered the exchange amounted to $9.8 billion. As a result of the listing, the share of the ex-Deputy Minister of Communications of the Russian Federation in the combined company (CIIG Merger Corp plus Arrival) will be about 75%.

The publication notes that Arrival is not the first electric car developer to enter the exchange through SPAC (Fisker, Canoo, Lordstown Motors and Nikola conducted the same transactions), but Denis Sverdlov's company has an advantage in terms of share value.

Arrival CFO Tim Holbrow told investors that the company expects revenue of $14 billion by 2024. Tesla, with a market capitalization of $600 billion in 2020, registered sales of $31 billion.[2]

2020

Receiving €50 million investment

At the end of 2020, the volume of investments of the Winter Capital fund (associated with the owner of Interros Vladimir Potanin) in Arrival became known. We are talking about 50 million euros, according to documents that the British manufacturer of electric vehicles sent to the US Securities and Exchange Commission (SEC) on the occasion of the planned IPO.

On October 12, 2020, Arrival completed a private offering of a total of 44,146,679 Class A preferred shares for a strategic investor represented by Winter Capital, as well as funds and brokerage firms managed by BlackRock, at a price of 3.40,909 euros apiece. On this deal, Arrival earned gross income of 150.5 million euros. The company planned to spend these funds on solving "general corporate problems."

Winter Capital invested in Arrival Group

The materials for the SEC also say that from the end of 2019 to October 2020, Arrival raised a total of 260 million euros and was valued at about $3 billion. In addition to Winter Capital, Hyundai and KIA (€100 million), BlackRock funds ($118 million) and the American logistics company UPS (€10 million) invested in the manufacturer of electric cars.

After merging with CIIG Merger (SPAC - a special technical structure created to simplify the entry of companies on the exchange), Arrival will become a public company. The Kinetik fund, the beneficiary of which is Sverdlov, will control the company even after the merger - Arrival shareholders in the combined company will have 88.1%, of which Kinetik will have about 76.4%, and new investors - about 7% (of which Winter Capital - 1.4%).[3]

Attracting investment from Winter Capital Partners

In November 2020, it became known that the Winter Capital Partners fund associated with billionaire Vladimir Potanin was among Arrival's investors. Such information is contained in a press release, which the British manufacturer of electric vehicles, founded by former Deputy Communications Officer RFDenis Sverdlov, issued on the occasion of the announcement of the upcoming release on the Nasdaq exchange.

The same report said that, in addition to Winter Capital, car manufacturers Hyundai Motor Company and Kia Motors, logistics company UPS, as well as a fund managed by investment giant BlackRock, invested in Arrival.

Vladimir Potanin's Winter Capital Partners (WCP) Fund turned out to be an investor in electric car developer Arrival

The managing director of the Winter Capital Advazors fund, Vasily Nikolaev, confirmed Forbes investments in Arrival, but did not disclose the amount of investments and the share of the fund in the company. Nikolaev noted that interest in Arrival is due to market considerations. According to him, the market for commercial vehicles is huge, and the share of electric transport on it is minimal, and the prospects are obvious.

In addition, there are companies in the sector whose valuation is higher, but the startup is ready to compete with them on an equal footing. So, Rivian was estimated at eight billion dollars, and the market capitalization of the developer of electric trucks Nikola is $10 billion.

Winter Capital is also an investor in, online cinema IVI the site, Banki.ru the pharmaceutical company "," the Petrovax medical IT platform DocPlanner To Poland in and others.

According to Forbes, by the end of November 2020, Arrival employs 1,200 people, and some engineers work in St. Petersburg. Of the 20 people of the top management team, 2-3 people worked with Sverdlov at Yota. In addition to a native of Russia, the main people in the company are former employees of General Motors. This is Avinash Rugobur, who worked for GM's daughter Cruise Automation autonomous transport, and Arrival production manager Mike Ableson, who worked for the American company for more than 20 years.[4][5]

Opening of headquarters in North America

On December 10, 2020, it became known that Arrival was opening its headquarters in Charlotte (North Carolina). For the British electric car manufacturer, this is the first office in the United States, but the company already has an enterprise there.

Arrival intends to invest about $3 million in the development of its headquarters, which will be located in the South End area of ​ ​ Charlotte. The company is going to bring together a staff of 150 new employees, Arrival is interested in attracting specialists in personnel, marketing, finance and administrative matters.

Former Deputy Minister of Communications of the Russian Federation Denis Sverdlov speaks with Arriva employees

Arrival's headquarters in North America will be located less than 30 miles (about 48 km) from its first US micro-farm in Rock Hill, South Carolina. The company employs more than 1,200 people, it has five engineering facilities and two micro-farms around the world.

The British startup has signed a memorandum of understanding (MOUs) with Charlotte authorities to help the city shape a sustainable urban environment, including the creation of 100% zero carbon fueling stations by 2030.

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This partnership forms a roadmap for how we develop a regional integrated transportation ecosystem that combines components such as electric vehicles, charging infrastructure, and digital mobility services, said Arrival Automotive CEO Mike Ablson.
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According to a press release, Arrival's goal is to produce electric vehicles that are competitive in price with traditional fossil fuel vehicles and lower cost of ownership than other comparable electric vehicles. Arrival believes that by developing a modular electric skateboard platform that can be used on various types of vehicles, along with the use of micro-factories created near large cities, it will be able to achieve its goals.

Arrival plans to produce commercial electric vehicles, starting with van and bus models. As Mike Ableson previously stated, by 2023 it is planned to launch four cars on the market.[6][7]

Former Maykor president Sergei Sulgin got a job at Arrival

On November 29, 2020, Telegram channel "Non-Digital Economy" reported that former Maykor president Sergei Sulgin got a job in the Arrival project, founded by Denis Sverdlov, who worked as Deputy Minister of Communications Nikolai Nikiforov in 2012-2013. According to the state British register of legal entities Companies House, Sulgin was appointed director of Arrival in February al in 2020. It also states that he has Maltese citizenship, and that he is a resident of England. More details here.

Statement of intention to enter the exchange

On November 18, 2020, Arrival announced its upcoming entry into the exchange. To do this, the British electric car developer, founded by former Deputy Communications Minister RFDenis Sverdlov, is teaming up with the American CIIG Merger. The new company will be called Arrival Group.

The closure of the transaction is scheduled for the first quarter of 2021. The market value of the combined company is expected to be $5.4 billion. This is almost $2 billion more than the estimate that Arrival received from investors following the results of the last round of financing by November 19, 2020.

Under the terms of the agreement, which it became known to Forbes magazine, Denis Sverdlov will receive 75% of the Arrival Group. When the company is estimated at $5.4 billion, its share may cost about $4 billion. This will help the entrepreneur enter the top 30 list of Russian billionaires according to the publication.

Arrival is going to enter the Nasdaq exchange
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We will reach a positive cash flow in 2023. The amount of funds that we will raise now is enough to maintain growth until we become profitable, "Sverdlov said.
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Arrival intends to place its shares on the Nasdaq exchange using the ARVL ticker. It is assumed that this transaction will bring the startup $660 million, including $400 million from private investors.

Arrival decided to enter the exchange through a merger with the so-called special technical company (SPAC), which is CIIG Merger. SPAC has no assets, no business history, no business plan. Such a company is specially created in order to unite with another company, so that the latter becomes public, bypassing the traditional IPO procedure. CIIG Merger was created by former CEO of Remington (manufacturer of skin and hair care devices) and Marvel (comic book publisher) Peter Cuneo[8]

Denis Sverdlov compared his electric car manufacturer with McDonald's

On October 20, 2020, Forbes magazine published excerpts from an interview with former Deputy Communications Minister Denis Sverdlov, who spoke about the micro-farms created by his electric car company Arrival.

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The rules of the game set by large factories are now violated... We [Arrival in comparison with large automakers - approx. TAdviser] approach each element of this process differently - what materials we use, how we design cars, how we collect them, "Sverdlov said.
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According to him dollars , the factories created for billions, and Ford Tesla other auto giants were too expensive and inflexible in the conditions of a fast-changing market and the transition to electrified transport.

Denis Sverdlov compared his electric car manufacturer with McDonald's

Arrival's idea is to build micro-factories located near customers making orders. Expensive stamping presses, painting and welding workshops and assembly lines will not be used there, Denis Sverdlov said.

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It's almost like a McDonald's model. You get as much as you need under your request... Arrival is now not just an electric car company. We are a technology company that creates systems that then create cars, "he said.
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The production scheme, built on the use of small enterprises, allows Arrival to greatly optimize costs and create relatively inexpensive machines. So, the company's plans include the production of electric vans at a price of about $40 thousand, which roughly corresponds to the cost of gasoline or diesel commercial cars. At the same time, other electric vans, as a rule, cost 50% more.

To accomplish this task, Arrival uses a lightweight aluminum chassis and body panels made of patented composites. Thanks to this, the economy on batteries is achieved - the main item of expenses in electric cars.[9]

Attracting $118 million in investments

On October 14, 2020, Arrival announced the attraction of $118 million in investments from funds managed by the investment company BlackRock. What time according to the results of the round of financing was the British developer of electric buses, founded by former Deputy Minister of Communications Denis Sverdlov, not reported.

BlackRock joins other strategic investors at Arrival, including Hyundai Motor Company, Kia Motors Corporation and UPS.

The developer of electric buses of the former Deputy Minister of Communications Denis Sverdlov Arrival attracted $118 million

Arrival intends to spend the money received from investors on expanding the production of electric cars, including the launch of a small enterprise in South Carolina - the first micro-factory for the company. It is expected that this plant will begin work in the second quarter of 2021, and production will be launched in October-December of the same year.

Arrival claims that the company's rapidly scalable microbes are not expensive and can be located anywhere in the world. In combination with its own components for electric cars and software, this reduces production costs and carbon footprint during transportation, the report said.

According to its own data, Arrival micro-farms produce 10 thousand vans or a thousand buses per year. The company intends to spend $46 million on events to enter the American market. It is assumed that at an enterprise in South Carolina, the company will be able to produce up to 1 thousand electric buses per year and provide work for 240 people.

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This additional capital will be invested in the development of Arrival, as we deepen and expand our presence in the USA and in other new markets around the world, "said Denis Sverdlov, whose words are quoted in a press release. In a conversation with RBC, Sverdlov said that new investments will go to the development of micro-factories.[10]
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New UPS Deal

In January 2020, the UPS postal service signed a contract for the purchase of 10 thousand Arrival freight electric vehicles.

Receiving €100 million of investments from Hyundai and Kia, company valuation - €3 billion

In mid-January 2020, South Korean automakers Hyundai and Kia announced the investment of 100 million euros in Arrival. According to the results of this financing transaction, the British developer of electric vans, founded by Denis Sverdlov, ex-head of the telecommunications operator Yota, was valued at 3 billion euros.

Denis Sverdlov called Arrival products "second-generation electric vehicles" and said that the investments attracted by Hyundai and Kia will allow the company to make a global expansion.

Edward Lee, Executive Vice President and Head of Commercial Vehicles at Hyundai, Albert Burmann, President and Head of Research and Development at Hyundai Motor Group, Arrival CEO Denis Sverdlov, Director General of Strategic Development at Arrival Avinash Rugobur

In turn, Hyundai and Kia, thanks to the cooperation initiated, intend to offer competitive electric compact and medium-sized commercial vehicles for logistics  companies, passenger transport companies, as well as providing vehicles on request. The Arrival platform can be adapted to the different types and categories of vehicles that Arrival, Hyundai and Kia plan to use to develop a number of PBVs (special vehicles).

It is noted that Arrival technologies will help South Korean automakers achieve the goals set in  the Hyundai Motor strategy until 2025 (involves the sale of 670 thousand electric vehicles annually, getting into the top three manufacturers of electric vehicles by 2025 and more).

In addition, the deal with Arrival allows Hyundai to accelerate the implementation of its strategy to supply battery electric and hydrogen fuel cells for the European commercial vehicle market.

By mid-January 2020, Arrival has production facilities and research centers in the United States, Germany, Singapore, Russia and Britain. The company plans to build "micro-farms" near large cities such as Los Angeles and New York, and hopes that they will immediately make a profit when producing only a few thousand cars per year.[11]

2019: Appointment of ex-Deputy Minister of Communications of the Russian Federation Alexei Kozyrev as General Director of one of the Russian missions

From February to September 2019, the former Deputy Minister of Communications of the Russian Federation Alexei Kozyrev worked as the general director of Errayval Distribution Platforms.

2018

Establishment of representative offices in Russia

In June 2018, Errayval Management Systems was registered in Moscow, and in September, Errayval Distribution Platforms. Both companies, according to the type of activity, plan to engage in the development of software and information technologies.

The owner of both companies is Dmitry Bulantsev, an ex-employee of Otkritie Bank and GiI Mani Bank.

Contract with UPS

In 2018, one of the largest American logistics operators UPS purchased Arrival electric trucks for experimental use in London and Paris.

2017: The company was renamed Arrival. Contract with Royal Mail

In 2017, the company changed its name from Charge R&D to Arrival and entered into a contract for the supply of its electric trucks with the UK postal service Royal Mail.

2015: Charge R&D UK registration

Creators of Charge R&D (since 2017 Arrival), according to the British register of legal persons, were the former Deputy Minister of Telecom and Mass Communications of the Russian Federation Denis Sverdlov (from March 6 to June 5, 2015 took a position of the CEO) and Glen of Saint (Glenn Saint), the ex-technical director of the company of Optare which is engaged in production of buses.

The company's office was located in the Whiteways Technical Center, the base center of the Lotus F1 team, located in Oxfordshire in southern England.

The Kinetik Venture Fund, created by Denis Sverdlov, mentioned Charge R&D on its website as one of the investment projects.

2014: Errayval Software Company is registered in St. Petersburg

The company "Errayval Software" was registered in St. Petersburg in August 2014. It was headed by Sergey Malygin.


Stock price dynamics

Ticker company on the exchange: NASDAQ:ARVL