Workhorse Group Announces Merger with Motiv Power Systems to Enhance Financial Profile and Market Position in Electric Vehicle Industry.

Workhorse Group is merging with Motiv Power Systems to create a leading North American medium-duty electric truck OEM. The merger will enhance the combined company's financial profile and operational scale, allowing for a broader portfolio of commercial electric vehicles at lower costs. Workhorse shareholders will retain a significant equity stake, and the transaction includes a $20 million sale leaseback of Workhorse's Union City plant and a $5 million convertible note. The merger aims to drive cost synergies and strengthen the company's market position in the electric vehicle industry.

Workhorse Group Inc. and Motiv Electric Trucks have entered into a definitive merger agreement to combine their operations and form a leading North American medium-duty electric truck original equipment manufacturer (OEM). The all-stock transaction, valued at approximately $105 million [1], will result in Motiv's controlling investor owning 62.5% of the combined company, while Workhorse shareholders will retain 26.5% [2].

The merger will bring together Workhorse's manufacturing capabilities and dealer network with Motiv's diverse product portfolio and fleet relationships. The combined entity aims to capture the $23 billion medium-duty truck segment, with a full range of Class 4-6 trucks [1]. The merger is expected to enhance the combined company's financial profile and operational scale, allowing for a broader portfolio of commercial electric vehicles at lower costs.

Workhorse has secured immediate financing through a $20 million sale-leaseback of its Union City plant and a $5 million convertible note [1]. The combined company expects to achieve $20 million in cost synergies by 2026, primarily through research and development, general and administrative costs, and facility cost reductions [1]. The simplified capital structure will also enable the combined company to raise additional capital post-close.

Scott Griffith, CEO of Motiv, is expected to serve as CEO of the combined company, while Rick Dauch, CEO of Workhorse, will serve as an advisor. The merger is expected to close in the fourth quarter of 2025, subject to Workhorse shareholder approval and other customary closing conditions [1].

References:
[1] https://www.ntea.com/articles/member-news/workhorse-group-and-motiv-electric-trucks-execute-definitive-agreement-combine
[2] https://www.stocktitan.net/news/WKHS/workhorse-group-and-motiv-electric-trucks-executed-definitive-ti4o9oxkbhlv.html