The combination will create a leading North American medium-duty electric truck original equipment manufacturer with a full range of Class 4-6 trucks valued at about $105 million, the companies said.
Workhorse Group Inc. (WKHS) and Motiv Electric Trucks on Friday announced that they have entered into a definitive merger agreement to combine in a transaction.
The combination will bring together two companies in the medium-duty electric vehicle space to create a leading North American medium-duty electric truck original equipment manufacturer (OEM) with a full range of Class 4-6 trucks valued at about $105 million, the firms said.
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 firm. On Stocktwits, retail sentiment around WKHS jumped from ‘bearish’ to ‘neutral’ over the past 24 hours, while message volume remained at ‘low’ levels.
A Stocktwits user sounded optimistic about the merger.
However, another user said the market is not buying the $105 million valuation on the combined company.
Under the deal, Motiv will be merged with a newly created subsidiary of Workhorse in exchange for newly issued shares of Workhorse common stock. Upon closing of the transaction, on a fully diluted basis, Motiv’s controlling investor initially will own approximately 62.5% of the combined company, Workhorse shareholders will own approximately 26.5% and Workhorse’s existing senior secured lender will have rights to receive common stock that represent approximately 11%.
The transaction is expected to close in the fourth quarter of 2025, subject to Workhorse shareholder approval and other customary closing conditions. The companies said they believe the deal will provide significant benefits to customers and shareholders by strengthening the combined company’s financial position and creating opportunities for margin expansion.
The firms further believe there is potential to achieve at least $20 million of cost synergies, through research and development, general and administrative, and facility cost-reductions by the end of 2026.
WKHS stock is down by 81% this year and by about 88% over the past 12 months.
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