Novi Welcomes Exciting Merger News
Big news is brewing right here in Novi! The Shyft Group, a major player in the commercial vehicle market, has just announced a thrilling all-stock merger with Switzerland’s own Aebi Schmidt Group. Both companies have been working hard to innovate and grow, and this major move aims to create a powerhouse in the industry.
What Does This Mean for Shyft and Aebi Schmidt?
Under the terms of the deal, Shyft Group shareholders will own a significant 48 percent of the newly combined entity. How cool is that? The merger has already received the green light from the boards of directors from both companies, so things are moving quickly. Folks can expect the deal to close by mid-2025, and the exciting part is that it will be a tax-free venture for Shyft shareholders. That’s some great financial news for those invested in the company!
What’s Cooking in the Numbers?
Now, if we take a peek at the money side of things, the merged company is projected to generate around $1.95 billion in revenue! On top of that, an adjusted EBITDA is expected to hit $200 million. Those are some impressive figures, and with this merger, both companies are aiming for steady growth through the years. In just the second year of operations, they project to create about $25 million to $30 million in synergies – which is pretty awesome for a newly formed organization.
Keeping It Global
Despite this merger creating a new big player in the commercial vehicle world, the headquarters will still be anchored in Frauenfeld, Switzerland. That means the legacy and strength of Aebi Schmidt will still play a role in the company’s future. The merged company will proudly be listed on NASDAQ, so plenty of eyes will be watching their journey!
What Do Both Companies Bring to the Table?
A little background here for those curious: Shyft specializes in a wide range of commercial vehicle products. They build everything from service truck bodies to RV chassis, not to mention their innovative electric delivery trucks. Meanwhile, Aebi Schmidt focuses on the upfitting of commercial vehicles. This includes everything from snow management to street sweeping, airport ice control, and even agricultural solutions. Talk about a dynamic duo!
A Vision for the Future
Barend Fruithof, the current CEO of Aebi Schmidt, has been appointed as the president- and CEO-elect of the newly formed company. He’ll be joined by Shyft’s Chairman, James Sharman, who takes on the role of chairman-elect. With such strong leadership, the future indeed looks bright!
John Dunn, president and CEO of Shyft, summed it up perfectly with his thoughts on this merger: “Combining with Aebi Schmidt is a powerful next step in Shyft’s strategy as we leverage the strengths of both companies’ industry-leading brands, innovative products, extensive customer relationships, and manufacturing excellence.”
Excitement Building for Shareholders
Dunn’s confidence in this merger is certainly infectious. He believes that not only will this create a more resilient company, but it will also open up valuable growth opportunities within the commercial truck and infrastructure space. That gives shareholders a reason to cheer as they anticipate a rewarding future.
So there you have it, Novi! This merger between Shyft Group and Aebi Schmidt is not just local news; it’s a big moment for the commercial vehicle industry as a whole. As we wait for the finalization in 2025, it’s sure to be an exciting journey ahead for both companies and their employees. Who knows what surprises they have up their sleeves?
