Workhorse shareholders approve the merger with Motiv

Workhorse Group (WKHS) announced that shareholders approved the company's merger with Motiv Electric Trucks. The transaction is expected to close in the coming weeks, subject to the satisfaction or waiver of customary closing conditions, including the entrance by Workhorse and Motiv’s largest investor into a new debt financing facility and the receipt of approval from Nasdaq.

Under the terms of the deal, Motiv will become a wholly owned subsidiary of the Ohio-based company via a newly created Workhorse subsidiary. Motiv’s controlling investor will initially own about 62.5% of the combined company, while Workhorse (WKHS) shareholders retain roughly 26.5%, and the existing senior secured lender controls about 11%.

The all-stock transaction is seen as positioning the merged entity as a leading medium-duty electric truck OEM in North America. Workhorse (WKHS) will leverage its Indiana facility, capable of producing 5,000 trucks annually, while Motiv brings diverse electric truck and bus products, as well as strong fleet customer relationships. The combination aims for operational scale, cost synergies, and long-term financial strength, with $20 million in anticipated synergies by 2026.

Motiv Electric Trucks was founded in 2009 and is based out of Foster City, California. The company manufactures medium-duty, zero-emission electric trucks and buses, including step vans, school buses, box trucks, shuttles, and work trucks. Motive has delivered over 370 vehicles since inception to ten of the top 20 U.S. fleets. Recently, the company is working to develop its next-gen Class 4-6 truck, which will offer 200 200-mile range with a 14,000-pound payload, powered by an LFP battery system.

Weighing in previously on the deal. Roth Capital analyst Craig Irwin and his team lowered the price target on Workhorse Group (WKHS) to $1.75 from $2.00. The PT was derived by using a 1.4X price-to-sales multiple. The 1.4X multiple reflects the limited growth visibility on the stock.

Meanwhile, BTIG analyst Gregory Lewis was positive on the deal, saying the Workhorse Group (WKHS) merger with Motiv creates a commercial electric vehicle manufacturer with a broader footprint while providing near-term liquidity. The firm has a Neutral rating on WKHS.

Shares of Workhorse Group (WKHS) were up 1.8% in postmarket trading to $0.95 vs. the 52-week range of $0.53 to $15.75.