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

Novi Welcomes Big Changes: The Shyft Group Joins Forces with Aebi Schmidt

In a groundbreaking move for the transportation and commercial vehicle industry, Novi’s very own Shyft Group has announced an exciting merger with Switzerland’s Aebi Schmidt Group. This all-stock deal, signed off by both companies’ boards, is set to shake up the market and create a combined powerhouse for commercial vehicle solutions. Shareholders of Shyft will own a respectable 48 percent of the newly formed entity, a significant piece of the pie!

What Does This Mean for the Future?

This merger is not just about combining logos and business cards; it’s expected to generate substantial revenue of $1.95 billion and an adjusted EBITDA (that’s earnings before interest, taxes, depreciation, and amortization) of $200 million. That’s some serious cash flow! With a projected closing date in mid-2025, it looks like both companies are gearing up for a successful transition.

A Home in Switzerland

Even with this major alliance, the new organization will maintain its headquarters in Frauenfeld, Switzerland. Plus, it’ll be listed on the NASDAQ. So, investors and business analysts will be keeping a close eye on how this venture unfolds!

Combining Strengths for Success

The Shyft Group is no stranger to the commercial vehicle market. They’re known for crafting a variety of products, ranging from service truck bodies to RV chassis, not to mention their foray into the world of electric delivery trucks. On the flip side, Aebi Schmidt specializes in commercial vehicle upfitting, airport snow and ice management, and even agricultural solutions. By merging their strengths, they are creating an all-encompassing service that will undoubtedly benefit customers around the globe.

Synergies and Growth on the Horizon

Officials from both companies are optimistic about the future. They anticipate that the new venture will experience a gradual growth in its first year and will produce $25 million to $30 million in synergies by the second year. This means they’ll be finding cost savings and efficiencies by working together. Talk about teamwork!

Leadership Transitions

As part of this merger, leadership roles are shifting. Current CEO of Aebi Schmidt, Barend Fruithof, will step into the role of president and CEO-elect, while Shyft’s chairman, James Sharman, will become chairman elect. It’s a fresh start that brings new faces to the head of the table!

A Strong Vision Ahead

Expressing enthusiasm about the merger, John Dunn, president and CEO of Shyft, shared, “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.” His confidence in merging the two companies speaks volumes about the potential of this very exciting venture.

Looking Forward

With a strong focus on resilience and growth opportunities in the commercial truck space and infrastructure-related solutions, it seems clear that this merger is not just a plan on paper—it’s all about unlocking real value for shareholders and customers alike.

As the clock ticks down to the planned merger closure, many in the transportation industry are eagerly awaiting what is sure to be a transformative push for both The Shyft Group and Aebi Schmidt Group. Here’s to new beginnings in Novi and beyond!