Tanfield, the owner of Smith UK, will retain a 49% holding in the US firm.

'This sale signals a bright future for the electric commercial vehicle industry,' said Bryan Hansel, CEO of Smith Electric U.S. 'Being in a position to unify Smith’s divisions after less than two years of operating in the United States is evidence that the market for affordable, sustainable commercial fleets is fertile. The unification of Smith Electric Vehicles will create operational efficiencies and market synergies that will make Smith more financially sound and productive.'

Smith UK has been a leading manufacturer of zero-emissions battery-electric commercial vehicles in Europe since the 1920s and maintains more than 5,000 vehicles for major fleet operators.

In 2009 Smith Electric US licensed the technology from the Tanfield Group and began to introduce the Smith Newton to the United States. Smith Electric U.S. is now a privately-held company owned by Private Investors, Tanfield, and  Management, headquartered in Kansas City, Missouri. The consolidation enhances a possible public offering of its equity securities in the United States.

Darren Kell, CEO of The Tanfield Group Plc, added: 'The board of Tanfield believes that the structure of this transaction offers the best possible deal for all parties. Tanfield's Powered Access Division benefits from additional working capital and we create a single, global electric vehicle business that is a market leader in both Europe and North America.

'Most importantly, Tanfield – and therefore its shareholders – retains a significant stake in the combined Smith Electric Vehicle business, with its future potential for an IPO.'