Shyft Group and Aebi Schmidt merge to become global leader in specialty vehicles

From Nasdaq: 2024-12-17 10:57:00

The Shyft Group (SHYF) and Aebi Schmidt Group have agreed to merge in an all-stock deal, creating a leading specialty vehicles company. Shyft shareholders will own 48% of the new entity, while Aebi Schmidt shareholders will hold 52%. The merger is expected to close by mid-2025, pending regulatory approvals and shareholder consent.

The combined company will be a global leader in specialty vehicles, with approximately 75% of revenues coming from North America. The merger will offer $20-$25 million in annual cost savings and an additional $5 million in adjusted EBITDA. Pro forma 2024 revenues are estimated at $1.95 billion, with strong margins and free cash flow.

Aebi Schmidt’s CEO will lead the new company, which will trade on NASDAQ and be domiciled in Switzerland. The board will consist of 11 members, with Aebi Schmidt’s majority shareholder owning around 35% of the company. The merger aims to deliver substantial value to shareholders by enhancing earnings per share and exceeding the weighted average cost of capital within three years.

In the auto space, SHYF holds a Zacks Rank #3 (Hold). Better-ranked stocks include Dorman Products, Inc. (DORM), Tesla, Inc. (TSLA), and Blue Bird Corporation (BLBD), each with a Zacks Rank #1 (Strong Buy). These companies are poised for growth, with improved sales and earnings estimates for the coming years. Investors can access the complete list of Zacks #1 Rank stocks for potential investment opportunities.

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Read more at Nasdaq: Shyft & Aebi Schmidt to Unite to Lead Specialty Vehicle Market