Workhorse Group and Motiv Electric Trucks Merge to Create Leading Electric Truck OEM in North America

Workhorse Group and Motiv Electric Trucks are merging to create one of the largest medium-duty electric truck OEMs in North America. The combined company will have a diverse product portfolio and fleet relationships, serving the $23 billion medium-duty truck segment. The merger values the combined company at approximately $105 million and is expected to close in Q4 2025.

Workhorse Group Inc. (Nasdaq: WKHS) and Motiv Electric Trucks have announced a definitive merger agreement to create a leading North American medium-duty electric truck original equipment manufacturer (OEM). The combined company aims to serve the $23 billion medium-duty truck segment, offering a diverse product portfolio and robust fleet relationships.

The merger, valued at approximately $105 million, brings together Workhorse's proven vehicles, manufacturing capabilities, and national dealer network with Motiv's diverse product portfolio and top fleet relationships. The combined company expects to create value by offering a broader range of high-performing commercial electric vehicles (EVs) at lower unit costs.

The transaction includes a $20 million sale leaseback (SLB) of Workhorse's Union City plant and a $5 million convertible note financing. These transactions will provide near-term liquidity to fund Workhorse's operations and pay down debt. Upon completion, the combined company will have a simplified capital structure, enabling it to raise additional capital post-close.

The merger is expected to close in the fourth quarter of 2025, subject to Workhorse shareholder approval and other customary closing conditions. Workhorse shareholders will maintain a significant equity stake, while Motiv's controlling investor will become the majority owner of the combined company.

The combined company anticipates significant benefits, including increased scale, an expanded product portfolio, and enhanced operational efficiencies. These factors are expected to support lower unit costs and optimize total cost of ownership (TCO) for customers. The companies also believe the merger will strengthen their financial profile and create opportunities for margin expansion and future growth initiatives.

Workhorse Group Inc. and Motiv Electric Trucks will hold a joint conference call on Tuesday, August 19, at 10:00 a.m. Eastern Time to discuss the proposed transaction and Workhorse's second quarter 2025 financial results. The call can be accessed via U.S. dial-in: 877-407-8289 and international dial-in: 201-689-8341.

References:
[1] https://ir.workhorse.com/news-events/press-releases/detail/303/workhorse-group-and-motiv-electric-trucks-executed