Towards a Cleaner Logistics Sector

IMAP Germany has advised Trailer Dynamics (TD) on a successful share capital increase with strategic investors. Michael Knoll and Sebastian Achleitner from the advising team subsequently spoke to Michael Nimtsch, CFO at TD to find out how this transaction has impacted their business.

First, for those who don’t know TD, what do you do?

TD is a technology innovator developing a new electrified trailer concept or “eTrailer”. We have a clear mission: to revolutionize conventional road logistics and make clean long-range road transportation a realistic option.

Traditional trailers are essentially steel chassis with wheels dragged by a tractor unit. We equip this chassis with a supporting propulsion e-axle, battery pack, control unit, cooling unit, and, at its core, an intelligent kingpin. This kingpin is a complex, patented sensor unit that continuously registers, records, and controls driving dynamics from the tractor unit and manages the propulsion system of the eTrailer in real time.

You recently increased your share capital to include several strategic minority investors. Could you please talk us through this decision?

We are on the verge of completing the development phase of our product with several prototypes on the road and already have high interest from the market. To date, we have more than 6,500 units reserved, representing a revenue potential of over €1,200 million. However, to fulfill these reservations, we need concentrate on the development of the eTrailer technology and focus on building production capacities, contracting personnel, etc.

Our first strategic shareholder, KRONE, provided funding for our first 3 years of R&D and prototype development along with a strong partnership to help scale our production. To accelerate the process further, we needed new partners with expertise in complementary technologies. We wanted to find a balance, that allows TD to continue operating independently and align with the best interests of our founders.

You have partnered with TRANE Technologies and Jost International, two leading suppliers of components for Trailers. Why were they the best choice for TD?

When we started this equity raising project together with IMAP, we were open to several options including strategic investors and pure play Venture Capital investors with a sustainability focus. TRANE Technologies / Thermo King and Jost emerged as the most interested strategic investors. Both share our vision for trailer technologies, and we see a perfect fit in combining Trailer Dynamics’ expertise in electrified trailer technology with Trane’s know-how in cooling technologies, and Jost’s know-how in safety relevant Trailer components. In addition, these new partnerships allow us to access production capacities, engineering knowledge and established sales and service networks on a global scale.

How do you plan to incorporate the perspectives and experience of these investors in the company? 

We are already working on developing the components of the eTrailer together, incorporating the newly gained capabilities into our go-to-market strategy. We foresee a whole line of products and technologies that can be developed, enhanced, and rolled out on a global scale, leveraging our new partners market positions.

How important do you think having the right experts to guide you through the process is?

Having IMAP by our side to guide us through the process has been crucial not only for finding the right partner after reaching out to more than 100 potential investors globally, but also for supporting us in the negotiations and aligning different shareholders’ interests.

IMAP encouraged us to keep various alternatives alive until signing and closing. This became important when we experienced some setbacks with several initially keen investors being unable to follow through in the end. Thanks to IMAP we had other options Furthermore, working with IMAP has allowed to focus on our core activities and continue to develop our business.

What would you say was the key to success in this transaction?

Continuity, responsiveness, transparency and establishing trust have been paramount throughout the entire process. With every step forward and back, we experienced, we firmly believe that the key to this successful outcome was to keep going and rely on the partners by our side to make it happen. Without the dedication and experience of both our team and IMAP in navigating a complex market environment, we wouldn’t be where we are today.

What are your plans for TD moving forward?

Having secured the financing for our company we are now able to focus on scaling the operations of our business and delivering on our reservations. In a first step, we aim to finalize the development of our product and make it ready for serial production. Simultaneously we will build up production lines and personnel to start serial production and we expect to see our eTrailers on the roads within the next 2-3 years. In the future we hope to see more road transportation using cleaner solutions, with other suppliers embracing similar technologies. We see ourselves as pioneers of making the shift towards a cleaner logistics industry, making a significant contribution to climate neutrality.