Workhorse and Motive Electric Trucks merge in the U.S.
According to the companies involved, the new player will operate "in the $23 billion medium-duty truck segment with a full range of Class 4-6 trucks". Talking about managers, 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.
Workhorse and Motive Electric Trucks, two major American companies in the field of medium-duty electric trucks in the U.S., have recently announced the intention to merge, in order to become “a leading North American medium-duty electric truck OEM”.
Under the terms of the merger agreement, 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. The transactions value the combined company at approximately $105 million.
According to the companies involved, the new player will operate “in the $23 billion medium-duty truck segment with a full range of Class 4-6 trucks”. Talking about managers, 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.
Statements from Motiv and Workhorse
“Bringing together two leading OEMs in the medium-duty space strengthens our ability to reduce the cost of electric trucks and make the total cost of ownership even more compelling,” said Scott Griffith, CEO of Motiv. “We believe this is a coming-of-age moment—not just for Motiv and Workhorse, but for the industry as a whole, and that widespread adoption of medium-duty electric trucks will come from achieving cost parity vs. ICE and diesel trucks and offering compelling long-term value. That’s exactly what we’re focused on delivering with this merger, and with a combined more than 17 million miles under our belt, we believe the transaction will put us in a strong starting position to deliver on this vision”.
“This transaction represents a significant milestone for Workhorse, our customers, our stakeholders and our shareholders,” said Rick Dauch, CEO of Workhorse. “By combining with Motiv and completing the related transactions, we are creating a broader product offering, strengthening our near- and long-term financial position and providing Workhorse shareholders with the opportunity to participate in the upside of a leader in the medium-duty EV commercial vehicle market”.
