Novi’s Shyft Group and Aebi Schmidt Group Announce Game-Changing Merger

Novi’s Shyft Group Joins Forces with Switzerland’s Aebi Schmidt Group!

In some exciting news for the commercial vehicle industry, the Shyft Group, based right here in Novi, has announced a game-changing all-stock merger with Switzerland’s very own Aebi Schmidt Group. Talk about global connections! This thrilling partnership is set to reshape the landscape of commercial vehicle manufacturing, with all the approvals in place for a smooth sailing ahead.

What This Merger Means for Shareholders

So, what’s in it for shareholders of the Shyft Group? Well, you’ll be pleased to know that after the merger, they are expected to own 48 percent of the resulting company. And if that’s not sweet enough, the deal is going to be completely tax-free. Yes, you heard right—you can keep those pesky taxes out of this equation!

When is This All Happening?

The management teams of both companies have agreed to finalize this deal, which is expected to close by mid-2025. Talk about a little excitement to look forward to! In the meantime, things will be buzzing behind the scenes as both companies work toward this new venture.

A Look at the Numbers

Now, let’s dive into some numbers because, let’s be honest, we all love a good statistic. This new combined powerhouse is set to generate a whopping $1.95 billion in revenue and aim for an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $200 million. That’s some serious cash flow!

The Expertise Behind the Merger

So, what can we expect from this new company? Both Aebi Schmidt Group and Shyft Group bring their unique skills to the table. Shyft is already well-known for its range of commercial vehicle products. They specialize in everything from service truck bodies to electric delivery trucks. Meanwhile, Aebi Schmidt focuses on commercial vehicle upfits, snow and ice management, street sweeping, pavement marking, and even agricultural solutions. Together, they’re going to create a comprehensive suite of options for customers everywhere!

Looking Ahead

The merger isn’t just about size; it’s also about being smart with resources. Officials from both companies are anticipating gradual growth in the first year of this new arrangement and expect to generate between $25 million to $30 million in synergies by the second year. That’s business lingo for making everything work better together and saving money in the process!

Leadership Transition

With a merger of this magnitude comes new leadership changes. Barend Fruithof, the current CEO of Aebi Schmidt, has been named president and CEO-elect, while the chairman of Shyft, James Sharman, will step into the role of chairman-elect. Exciting times are ahead as they lead their teams through this transformative period!

The Future Looks Bright

As John Dunn, the president and CEO of Shyft Group, put it, “Combining with Aebi Schmidt is a powerful next step in Shyft’s strategy… to unlock value for our shareholders.” With a vision like that, the future of this newly merged company looks incredibly promising.

So there you have it, folks! A big change is on the horizon for the Shyft Group and Aebi Schmidt Group, blending resources and expertise to create a stronger company built for growth in the commercial vehicle space. Stay tuned; this journey has just begun!

Author: HERE Novi