US specialty vehicle maker Shyft to merge with Switzerland-based Aebi Schmidt (updated)

Shyft

16/12/2024 15:22

(Updates shares, adds details and background in paragraphs 3-5,
10-12)
       Dec 16 (Reuters) - Shyft Group  SHYF.O  and
Switzerland-based Aebi Schmidt will merge in an all-stock deal,
the companies said on Monday, sending the U.S. specialty vehicle
maker's shares up 13%.
    Michigan-based Shyft, which has a market value of about $439
million according to data compiled by LSEG, manufactures and
assembles specialty vehicles such as work trucks and
recreational vehicles. 
    Swiss-based Aebi also manufactures specialty vehicles, along
with attachments for custom equipment. 
    The merger will combine Aebi's specialty vehicle products
and services with Shyft's manufacturing, assembly and
customizations for the commercial, retail and service specialty
vehicle markets.
    Under the terms of the deal, each outstanding share of
Shyft's common stock will be exchanged for 1.04 shares of the
combined company's common stock.
    Shyft shareholders will own 48% of the combined company,
while those of Aebi Schmidt will hold the rest, the companies
said.
    The companies, however, did not provide any additional
details on the deal value. 
    The new combined company is expected to have an estimated
pro-forma revenue of $1.95 billion for 2024, the companies said.
    Barend Fruithof, chief of the Swiss specialty vehicle
products and services firm, will head the combined company,
while Shyft CEO John Dunn will remain with the merged entity
after the deal closes.
    The new company will be headquartered in Switzerland and
will trade on the NASDAQ, the companies said. 
    The deal is expected to close by mid-2025.
    Deutsche Bank served as Shyft's financial adviser. Davis
Polk & Wardwell LLP acted as its legal adviser, while Lenz &
Staehelin served as local Swiss counsel. 
         

 (Reporting by Gursimran Kaur and Nathan Gomes; Editing by
Subhranshu Sahu and Krishna Chandra Eluri)
 ((GursimranKaur.Mehar@thomsonreuters.com;
nathan.gomes@thomsonreuters.com))