Workhorse Group and Motiv Electric Trucks Executed Definitive Agreement to Combine, Creating a Leading Medium-Duty Electric Truck OEM in North America

Core Viewpoint - The merger between Workhorse Group Inc. and Motiv Electric Trucks aims to create a leading North American medium-duty electric truck OEM, enhancing value through a broader portfolio of high-performing commercial EVs at lower unit costs [1][3][4] Company Overview - Workhorse Group Inc. focuses on zero-emission commercial vehicles and operates its manufacturing in Union City, Indiana [16] - Motiv Electric Trucks specializes in medium-duty, zero-emission electric trucks and buses, producing a variety of vehicles that meet stringent emissions standards [18][19] Merger Details - The merger is an all-stock transaction valuing the combined company at approximately $105 million, with Motiv's controlling investor becoming the majority owner [2][7] - Workhorse has completed a $20 million sale leaseback of its Union City plant and a $5 million convertible note financing in connection with the merger [1][8] Market Position - The combined company will operate in the $23 billion medium-duty truck segment, offering a full range of Class 4-6 trucks [3] - The merger is expected to enhance operational efficiencies and lower total cost of ownership (TCO) for customers [3][5] Financial Implications - The merger is anticipated to strengthen the financial profile of the combined company through improved operational scale and a simplified capital structure [4][6] - The companies expect to achieve at least $20 million in cost synergies by the end of 2026 through reductions in R&D, G&A, and facility costs [9] Leadership Structure - Following the merger, Scott Griffith, CEO of Motiv, will lead the combined company, while Rick Dauch, CEO of Workhorse, will serve as an advisor [4][5] Strategic Benefits - The merger is positioned to create a scalable manufacturing platform and a diverse product portfolio, enhancing the ability to serve a blue-chip customer base [3][9] - The combined company aims to leverage existing relationships with major medium-duty fleets to drive large-scale adoption of electric trucks [9]