It's easy to imagine why auto enthusiasts would be nostalgic for the Land Rover Defenders of the 1980s. The rugged look and strength of the four-wheel-drive vehicle conjures thoughts of off-road adventures, bouncing across steep, snowy terrains with relative ease — something the so-called "next-gen" trucks of today apparently can't handle.
ECD Automotive Design Inc. ECDA wants to bring back those cars of yesteryear but with a modern — and way more personal — touch.
Interested? It's pricey — $25,000 just to start production. But if you can't afford to buy one of ECD's cars, you can at least own a piece of the company now that it's publicly traded.
What Happened: Kissimmee, Florida-based ECD just went public on the Nasdaq Global Market on Wednesday.
ECD GOES PUBLIC! Ringing a different bell for a different reason today at ECD, but this bell is extremely special
— E.C.D. Auto Design (@ECDautodesign) December 13, 2023
Watch here: 📸 https://t.co/Oy9TrJDGa4 pic.twitter.com/ZfLIRkNve8
The process, announced in March, saw EF Hutton Acquisition Corporation I EFHT, a special purpose acquisition company (SPAC), complete a deal with Humble Imports to become ECD Auto.
By Wednesday, Dec. 13, the ticker "ECDA" was emblazoned across the NASDAQ digital board in New York City's Times Square.
According to CEO Scott Wallace, ECD touts "world-famous names" among its wealthy clientele, including celebrities and athletes. While he remained tight-lipped on who specifically subscribes to ECD's services, Wallace told Benzinga that one out of five trucks is a repeat client.
In other words, customers keep coming back.
"We're not a pompous brand, and we're true to our roots," Wallace said. "[Customers] see a c-suite of people that are just gear heads."
These gear heads are also highly accommodating. Wallace describes it as a white glove service for car customization.
"There has to be more white glove [service] in the luxury sector, particularly automotive," he said. "And that's what we've we've done from day one."
What started out as a whacky idea over drinks with brothers Tom and Elliott Humble (owners of East Coast Defender) became a reality when Wallace, a veteran financier and dealmaker, decided to forgo retirement and embrace his love for old cars.
The trio, along with Tom's wife, Emily, financed the company on their own and are now profitable.
What makes ECD unique is the lengths the company pledges to go to weave in a client's special requests. Some personal touches are routine (i.e., equipping the interior with an exorbitant number of iPhone outlets). Others are a tad offbeat: seats made of alligator skin or a specific cattle hide from Italy.
But with each project — ECD also makes the Jaguar E-Type — there's a classic feel, but with modern-day tech and safety standards.
"The car looks 40 years old on the outside, but on the inside, you get all the things you expect," Elliot Humble said.
When asked if there were any customization requests too outlandish to fulfill, Humble jokingly referenced a hit MTV series, saying, "We're not 'Pimp My Ride'."
Why It Matters: The fact that ECD went public via SPAC is a gutsy move. IPOs, let alone SPACs, were rare in 2023.
Data shows the SPAC market experienced a 76% decline in IPOs in the first half of 2023 compared to the first half of 2022, as well as a record number of liquidations.
The average gross IPO proceeds fell from about $172 million in the first six months of 2022 to $118 million during the same timeframe in 2023.
What's Next: Wallace, a former M&A pro, noted that the car customization space is also ripe for consolidation.
And as for where ECD might bring its services next, the UAE is an option.
"They're a big market for us," Wallace said, citing the country's "love for expensive luxury sports cars." But time will tell when boots are on the ground for that move.
"We wouldn't do it halfhearted," he adds. "It's not what we do."
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Image: ECD, Matt Chesler
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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