Zero-emission vehicle manufacturers Motiv and Workhorse Group said on Friday they have entered into a definitive merger agreement to form a single North American medium-duty electric truck company, valued at about $105 million.
The all-stock deal will see Motiv’s controlling investor become the majority owner of the combined company, while Workhorse shareholders will retain a significant equity stake. Workhorse also completed a sale-leaseback and secured convertible note financing in connection with the agreement.
The new company will focus on Class 4-6 medium-duty trucks, combining the firms’ platforms to expand product offerings, gain operational efficiencies and reduce unit costs. The companies said the transaction is intended to strengthen their financial profile, simplify capital structure and position them to capture demand from the transition to clean energy.
“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 Motiv CEO Scott Griffith, who will lead the combined company. “We believe this is a coming-of-age moment – not just for Motiv and Workhorse, but for the industry as a whole.”
Workhorse CEO Rick Dauch is expected to serve as an advisor to the new entity. Together, the two companies bring more than 17 million miles of operating experience in electric trucks.
