Workhorse Group Inc., and Motiv Electric Trucks have entered into a definitive merger agreement to combine in a transaction that will create a leading North American medium-duty electric truck OEM.
Under the terms of the merger agreement, following the completion of the all-stock transaction, Motiv’s controlling investor will become the majority owner of the combined company and Workhorse shareholders will maintain a significant equity stake. In connection with the merger agreement, Workhorse has completed a sale leaseback and obtained convertible note financing.
Following the closing of the transaction, Scott Griffith, Motiv CEO, is expected to serve as CEO of the combined company and Rick Dauch, Workhorse CEO, is expected to serve as an advisor to the combined company.
The combination brings together two innovators in the medium-duty electric vehicle space to better serve a customer base and enhance value for shareholders. Building on the companies’ complementary platforms, the combined business will be a leader in the $23 billion medium-duty truck segment2 with a full range of Class 4-6 trucks. The companies believe that together, they will benefit from increased scale, an expanded product portfolio and enhanced operational efficiencies to support lower unit costs while optimizing total cost of ownership for customers.
The combined company is expected to have a strengthened financial profile with a simplified capital structure and the financial resources to capture anticipated demand from the ongoing transition to clean energy and better help customers decarbonize their fleets.
