Worksport Signs Non-Binding Term Sheet for Proposed U.S. Truck Accessory Acquisition
Worksport Ltd. has signed a non-binding term sheet for its proposed first acquisition, targeting a U.S.-manufactured truck bed accessory business and its intellectual property.
Worksport Ltd. (NASDAQ:WKSP) has signed a non-binding term sheet for its proposed first acquisition: a business with a patented, U.S.-manufactured truck bed accessory that is already being sold. The transaction has not been completed and remains subject to due diligence, further negotiations, definitive agreements and applicable closing conditions.
The accessory is designed to make cargo in a truck bed easier to access. Worksport said the product could be sold separately or combined with its tonneau covers, including the NEXUS tonneau cover during major promotional periods.
The company said the proposed transaction would extend its product range beyond tonneau covers while using existing manufacturing, distribution and customer channels. Worksport designs and manufactures its proprietary tonneau covers at its facility in West Seneca, New York.
Worksport intends to market the product through cross-selling to existing customers and distribution partners. The company also plans to package it with tonneau cover purchases if the acquisition is completed.
Worksport said its customer database includes more than 50,000 targetable customers acquired through organic growth and paid advertising. Its distribution network accounted for 50% of September net sales, according to the announcement.
The company said the proposed product would be aimed at the same truck owners and truck beds served by its existing covers. Worksport also said its manufacturing infrastructure and distribution platform could support the additional product line.
In discussing the potential opportunity, Worksport cited SEMA figures showing that vehicle owners spent more than $15 billion modifying pickups in 2025. Nearly $4 billion of that spending was attributed to utility accessories such as racks, toolboxes and covers.
The term sheet is non-binding with respect to the proposed acquisition. Completion remains dependent on ongoing due diligence, negotiation and execution of definitive agreements, and satisfaction of applicable closing conditions. Worksport said there can be no assurance that a definitive agreement will be signed or that the proposed acquisition will be completed.
Worksport said it believes the acquisition will close in the near term, but the transaction remains subject to the conditions described above. The company also identified risks involving the completion of due diligence, reaching acceptable terms, integrating the product, achieving anticipated cross-selling, supply chain delays, consumer acceptance, third-party sales, competition, production constraints, working-capital requirements and the availability of financing on acceptable terms.
The announcement followed Worksport's preliminary third-quarter results, which the company reported on November 3, 2026. Those figures included record net sales of approximately $7.24 million and operating cash use of approximately 5% of net sales.
The third-quarter financial information is preliminary and unaudited, based on management's current close and subject to completion of quarter-end review procedures. Worksport said the figures may differ from the results reported in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
Steven Rossi, Worksport's Founder and Chief Executive Officer, said the proposed transaction is intended to use the company's U.S. manufacturing operations, distribution network and customer base for a product beyond tonneau covers. Rossi also said that reaching positive operating cash flow remains Worksport's first priority.
Through its subsidiaries, Worksport designs, develops, manufactures and owns intellectual property related to tonneau covers, solar integrations, portable power systems, and clean heating and cooling solutions. The company said it primarily serves the light truck, overlanding and global consumer goods markets.
Worksport has signed a non-binding term sheet for its proposed first acquisition.
The target is a business with a patented, U.S.-manufactured truck bed accessory already on the market.
Worksport intends to pursue standalone sales, cross-selling and bundling with its tonneau covers if the transaction is completed.
Completion remains subject to due diligence, definitive agreements and applicable closing conditions, and there is no assurance the acquisition will proceed.
Worksport referenced preliminary third-quarter net sales of approximately $7.24 million and operating cash use of approximately 5% of net sales; the figures are unaudited and may change.
Worksport announced on November 4, 2026 that it had signed a non-binding term sheet to acquire a growing business with a patented, U.S.-manufactured truck bed accessory and accompanying intellectual property portfolio. The proposed acquisition would be Worksport’s first and remains subject to due diligence, definitive agreements and applicable closing conditions.
The proposed acquisition has not been completed. Worksport said the term sheet is non-binding, and completion remains subject to ongoing due diligence, negotiation and execution of definitive agreements, satisfaction of applicable closing conditions, and there can be no assurance that a definitive agreement will be signed or that the proposed acquisition will be completed.
Worksport is proposing to acquire a patented, U.S.-manufactured truck bed accessory that is already on the market. The product is designed to make cargo in a truck bed easier to access and is intended for standalone sales as well as bundled sales with Worksport’s tonneau covers.
Worksport said the product could be cross-sold to its existing customers and distribution partners and packaged with existing Worksport tonneau cover purchases. Following completion, Worksport intends to bundle it with its top-selling NEXUS tonneau cover during major promotional periods.
Worksport said it would use its U.S. manufacturing and distribution network, established brand and customer database to support the product. Worksport designs and manufactures its proprietary tonneau covers in-house at its West Seneca, New York facility, and said the proposed acquisition would extend that model to a second product line.
Worksport said its customer database includes more than 50,000 targetable customers acquired through organic growth and paid advertising. Its distribution network accounted for 50% of September net sales, according to the announcement.
Worksport referenced preliminary third-quarter results reported on November 3, 2026, including record net sales of approximately $7.24 million and operating cash use reduced to approximately 5% of net sales. The figures are preliminary and unaudited, remain subject to quarter-end review procedures and may differ from the results in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.
Worksport cited SEMA figures stating that vehicle owners spent more than $15 billion modifying pickups in 2025, including nearly $4 billion on utility accessories such as racks, toolboxes and covers. These figures were included in the company’s explanation of the proposed product’s market context.
Worksport said the accessory is designed for the same truck owner and truck bed as its tonneau covers, creating a potential companion product for the same sales channels. The company said the proposed acquisition is intended to create new sales opportunities across its existing and new customers and distribution channels.
Steven Rossi, Founder and Chief Executive Officer of Worksport, said the proposed transaction is intended to put the company’s U.S. manufacturing, distribution and customer base to work. He also said reaching positive operating cash flow remains Worksport’s first priority and described the transaction as part of the company’s direction towards products beyond tonneau covers.
Worksport identified risks including the ability to complete due diligence, negotiate and execute definitive agreements and complete the proposed acquisition on acceptable terms or at all. It also cited integration and cross-selling risks, supply chain delays, consumer acceptance, third-party sales delays or nonacceptance, competition, production constraints, working-capital requirements, continued reduction of operating cash use and the availability of financing on acceptable terms.
Worksport Ltd. shares trade on NASDAQ under the ticker symbol WKSP, written in the announcement as NASDAQ:WKSP.
Worksport, through its subsidiaries, designs, develops, manufactures and owns the intellectual property on tonneau covers, solar integrations, portable power systems, and clean heating and cooling solutions. The company said it primarily serves the light truck, overlanding and global consumer goods markets.