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CINCINNATI/FOSTER CITY - Workhorse Group Inc. (NASDAQ:WKHS), currently valued at $16.77 million and showing a WEAK financial health score according to InvestingPro, and Motiv Electric Trucks announced Friday they have entered into a definitive merger agreement to combine operations in an all-stock transaction valuing the combined company at approximately $105 million.
The merger will unite Workhorse’s manufacturing capabilities and dealer network with Motiv’s product portfolio and fleet relationships to create a leading North American medium-duty electric truck manufacturer. Following the completion of the transaction, Motiv’s controlling investor will become the majority owner with approximately 62.5% of the combined company, while Workhorse shareholders will retain approximately 26.5%.
In conjunction with the merger agreement, Workhorse completed a $20 million sale-leaseback of its Union City, Indiana manufacturing facility and secured a $5 million convertible note financing from entities affiliated with Motiv’s controlling investor. This financing comes at a crucial time, as InvestingPro data shows the company carries a total debt of $50.7 million and has been rapidly burning through cash, with negative EBITDA of $55.07 million in the last twelve months.
The companies believe their combined operations will benefit from increased scale, expanded product offerings, and enhanced operational efficiencies that will support lower unit costs for their Class 4-6 electric trucks. The merger aims to position the combined entity as a leader in the $23 billion medium-duty truck segment.
"By combining with Motiv and completing the related transactions, we are creating a broader product offering, strengthening our near- and long-term financial position," said Rick Dauch, CEO of Workhorse, in the press release statement.
Scott Griffith, Motiv CEO, is expected to lead the combined company, with Dauch serving as an advisor. The companies anticipate achieving at least $20 million in cost synergies by the end of 2026.
The transaction, which requires Workhorse shareholder approval and other customary closing conditions, is expected to close in the fourth quarter of 2025. As part of the closing conditions, entities affiliated with Motiv’s controlling investor will provide $20 million in debt financing. For investors seeking deeper insights into this merger’s implications, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks, including detailed financial health metrics and expert analysis of such strategic transactions.
In other recent news, Workhorse Group Inc. reported its financial results for the first quarter of 2025, indicating a significant decline in sales compared to the previous year. This downturn in revenue has raised concerns among investors about the company’s ongoing operational challenges. Additionally, Workhorse disclosed that it is in discussions regarding a potential merger with a privately held U.S.-based electric commercial vehicle manufacturer. This transaction could result in significant dilution for existing shareholders, as the current investors of the private company would hold a substantial majority of Workhorse’s outstanding common stock after the deal closes. These developments reflect the company’s strategic efforts to innovate and expand within the electric vehicle market despite facing financial hurdles.
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