Novi’s Shyft Group Merges with Swiss Aebi Schmidt Group in Historic Deal

Novi Gets Exciting News: A Merger to Remember!

In a buzzworthy announcement today, the Shyft Group located in Novi is officially merging with the Swiss-based Aebi Schmidt Group in an all-stock deal that’s catching everyone’s attention! Fans of innovation and commercial vehicles alike are eager to see how this exciting combination is set to reshape the industry.

What’s Happening?

The boards of directors for both companies have unanimously approved this deal, and it’s expected to close by mid-2025. What’s even better? The merger will be tax-free for Shyft shareholders. Isn’t that a bonus everyone can get behind?

With these changes, Shyft Group shareholders will own a substantial 48 percent of the new company—how’s that for keeping things local? The merged entity aims to bring in a whopping $1.95 billion in revenue along with an adjusted EBITDA of $200 million! Now that’s some serious financial muscle!

Where’s The Home Base?

After the merger, the new company will continue to call Frauenfeld, Switzerland its home. It will also be listed on the NASDAQ, which opens up even more exciting opportunities for investors. Just imagine the possibilities!

A Closer Look at Both Companies

Shyft Group is renowned for producing a plethora of commercial vehicle products. This includes everything from service truck bodies and RV chassis to specialized lighting for emergency services. They’re even stepping into the future with their electric delivery trucks! Talk about innovation!

On the flip side, Aebi Schmidt is equally impressive, shining in areas like commercial truck upfitting, snow and ice removal, and agricultural solutions. They’ve carved out a well-respected niche in the market and their focus complements Shyft’s breadth of offerings.

What’s Next?

So, what does this mean for the future? Officials from both companies expect gradual growth during the first year post-merger. And by the second year, they’re aiming to see between $25 million and $30 million in synergies! That sounds promising, right?

A New Team at the Helm

In terms of leadership, Barend Fruithof, the current CEO of Aebi Schmidt, has been named president- and CEO-elect of the newly merged company! Meanwhile, Shyft’s Chairman, James Sharman, will take on the role of chairman-elect—pretty exciting times for both gentlemen!

What Leaders Are Saying

John Dunn, the president and CEO of Shyft, shared his enthusiasm about the merger, stating, “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 the team is contagious!

Dunn believes that this new merger not only creates a more resilient company but also opens up meaningful growth opportunities within the commercial truck space and infrastructure-related solutions. There’s a lot to look forward to!

To Wrap It Up

This merger is definitely a game-changer in the commercial vehicle sector. Both companies are excited about the potential for combined strengths and innovative products. For shareholders, employees, and customers alike, the future is looking bright! Now, let’s sit back and watch as this dynamic duo takes the industry by storm!