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(Updated actions, added details and context in paragraphs 3-5, 10-12)
Shyft Group SHYF.O and Swiss company Aebi Schmidt will merge in an all-stock deal, the two companies announced Monday, sending shares of the U.S. specialty vehicle maker up 13 percent.
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.
Aebi, headquartered in Switzerland, also manufactures specialized vehicles, as well as accessories for custom equipment.
The merger will combine Aebi’s specialty vehicle products and services with Shyft’s manufacturing, assembly and customization for the commercial, retail and service specialty vehicle markets.
Under the terms of the transaction, each outstanding share of Shyft common stock will be exchanged for 1.04 shares of common stock of the combined company.
Shyft shareholders will own 48% of the new company, while Aebi Schmidt shareholders will own the rest, the two companies said.
However, the companies did not provide additional details on the value of the operation.
The new combined company is expected to have estimated pro-forma revenue of $1.95 billion for 2024, the companies said.
Barend Fruithof, head of the Swiss specialty vehicle products and services company, will lead the new company, while John Dunn, chief executive of Shyft, will remain with the combined entity after the deal closes.
The new company will be headquartered in Switzerland and listed on NASDAQ, the two companies said.
The operation should be finalized by mid-2025.
Deutsche Bank served as Shyft’s advisory bank. Davis Polk & Wardwell LLP acted as legal advisor, while Lenz & Staehelin acted as Swiss local advisor.
