Workhorse & Motiv Electric Trucks plan to merge
The transaction will take place entirely via stock and will see Motiv’s controlling investor become the majority owner of the new company. Motiv will be merged with a newly created subsidiary of Workhorse in exchange for newly issued shares of Workhorse common stock, which would then leave Motiv’s controlling investor with approximately 62.5% of the combined company. Meanwhile, Workhorse shareholders are to receive 26.5% of the shares, and Workhorse’s existing senior secured lender will have rights to receive 11% of the common stock.
Once the process has been completed, the merged company aims to compete in the medium-duty electric truck market with a broader portfolio of vehicles at lower unit costs.
By combining the companies, they plan to not only share their customer base and broaden their product lineups, but also create major cost savings in research and development. In their press release, the companies state an estimation of at least $20 million in savings in R&D, G&A (general & administrative), and facility cost-reductions by the end of 2026.
The merger agreement is not yet entirely final, however, as it is still subject to Workhorse shareholder approval and other customary closing conditions, including a debt financing commitment. For this purpose, Workhorse is planning to discuss the proposed transaction with shareholders during a joint conference call for the Q2 2025 financial results.
“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. He added: “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.”
“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,” explained Rick Dauch, CEO of Workhorse. “We believe Motiv is the right partner to support the advancement of our combined product roadmap and capture new growth opportunities.”
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