Barend Fruithof’s recent merger with American company Shyft marks a pivotal moment for Aebi Schmidt, transforming it into a leading manufacturer of specialty vehicles. After three months of intense negotiations, Fruithof secured the deal, positioning the company for significant growth and an expected revenue of over $2 billion. With plans for an IPO on the Nasdaq, Aebi Schmidt aims to enhance its portfolio and accelerate its transition to electric drives while maintaining a strong market presence.
Barend Fruithof’s Historic Deal at Zurich Airport
Just before noon on Wednesday, Barend Fruithof arrived at Zurich Airport, carrying with him a groundbreaking achievement for Aebi Schmidt. This former manufacturer of mowing machines from the Emmental is on the verge of transforming into a global powerhouse, with Aebi shares set to debut on the renowned Nasdaq technology exchange.
A Grueling Negotiation Journey
Fruithof spent the last three months tirelessly negotiating a merger with the American company Shyft. His commitment took him to Detroit five times, and during this intense period, he often found himself sleeping just a few hours a night. The toll of this grueling schedule was evident as he limped off the plane in Zurich, having broken two toes after colliding with the edge of his bed in a moment of exhaustion.
The successful Shyft deal positions Aebi Schmidt among the top three manufacturers of specialty vehicles, ranging from electric street sweepers to massive airport snow plows. With an expected revenue of over $2 billion, Fruithof understands the significance of this moment. However, the exhaustion of this marathon negotiation left him with little desire to celebrate; the victory felt overshadowed by the weight of the journey, both physically and mentally.
Fruithof’s background is as colorful as his journey through the Swiss economy. The son of a Dutch civil engineer, he grew up in the Zurich wine region, initially struggling to engage with academics before pursuing a career in farming. Realizing that owning a farm was not in his future, he shifted gears and entered the banking sector, where he eventually excelled at Credit Suisse as head of corporate banking. His larger-than-life presence often turned heads, with his signature cowboy boots and fast cars becoming a trademark.
However, a setback came when he joined Bank Julius Baer in 2015. After a brief stint, he found himself out of work, countering the expectations that he would ascend to the CEO position. This turning point led Fruithof back to his roots as he took the helm at Aebi Schmidt, a company that had been successfully rescued from bankruptcy by industrialist Peter Spuhler.
Spuhler envisioned a revival of Aebi Schmidt akin to his previous success with Stadler Rail, aiming to transform a mismanaged entity into a contemporary industrial leader. Fruithof was the chosen architect for this ambitious plan, acquiring multiple companies rapidly, with the U.S. market becoming a focal point of expansion. The acquisition of two American companies served as a precursor to the monumental merger with Shyft.
This merger is not just a strategic move; it offers Aebi Schmidt the scale necessary to transition towards electric drives while balancing its diverse portfolio. Moreover, the new corporation gains immediate access to the capital market due to Shyft’s existing listing. The long-speculated IPO for Aebi Schmidt now comes as a bonus.
The financial intricacies of the deal are noteworthy: Shyft shareholders will receive Aebi Schmidt shares instead of cash, placing the Swiss in a commanding position with 52 percent of the shares. Fruithof will remain at the helm as CEO, while Spuhler will hold the title of main shareholder, with the headquarters established in Frauenfeld and a projected market value of around $1.8 billion.
Even in a challenging year marked by declining stock prices and troubled investments, this deal showcases Spuhler’s enduring ambition at 65. Only a small circle at Aebi Schmidt was aware of the merger plans, with Fruithof leading negotiations under Spuhler’s mentorship. They navigated through critical discussions on where to concede and where to stand firm, all while maintaining constant communication across the Atlantic.
The duo’s dynamic is intriguing; both have a shared history of athleticism and a penchant for a vibrant lifestyle, yet they can also be quite forceful in their opinions. Fruithof’s direct style, particularly his warnings about credit conditions after significant mergers, reflects his candid approach, while Spuhler’s background in politics lends him a more diplomatic demeanor. Interestingly, UBS acted as an advisor in the Shyft merger, adding a layer of complexity to the deal.
However, not all collaborations between Spuhler and Fruithof have been seamless. Their authoritative presence can evoke defensive responses, as seen in their involvement with Swiss Steel, where Fruithof’s assertiveness clashed with the main shareholder’s perspectives. Despite the setback, the failure at Swiss Steel ultimately allowed them the bandwidth to pursue the Shyft merger without the complications of a simultaneous restructuring.