Shyft & Aebi Schmidt to Unite to Lead Specialty Vehicle Market

Core Viewpoint - The Shyft Group and Aebi Schmidt Group have announced an all-stock merger to form a leading specialty vehicles company, with Shyft shareholders owning 48% and Aebi Schmidt shareholders owning 52% of the new entity upon closing [1][2]. Group 1: Merger Details - The merger combines Aebi Schmidt's expertise in specialty vehicles with Shyft's manufacturing capabilities, creating a comprehensive suite of offerings for customers [2]. - The new company will derive approximately 75% of its revenues from the North American market, supported by Aebi Schmidt's European operations [3]. - The merger is expected to close by mid-2025, pending regulatory approvals and shareholder consent [7]. Group 2: Financial Projections - Pro forma revenues for 2024 are estimated at $1.95 billion, with adjusted EBITDA exceeding$200 million [5]. - The combined entity anticipates achieving annual cost savings of $20-$25 million and an additional $5 million in adjusted EBITDA from synergies [4]. - Pro forma net debt is projected to be approximately$485 million as of September 30, 2024 [5]. Group 3: Governance and Leadership - Barend Fruithof, Aebi Schmidt's CEO, will lead the new company, with Shyft's chairman James Sharman serving as chairman of the board [6]. - The board will consist of 11 members, including five from Shyft and six from Aebi Schmidt, along with seven independent directors [6]. - Aebi Schmidt's majority shareholder, Peter Spuhler, will own about 35% of the new company [6].