Harley buys MV Agusta & Cagiva

[YELLOW_S]

Yep...

This just in from Harley-Davidson:

HARLEY-DAVIDSON TO ACQUIRE MV AGUSTA GROUP
EXPANDING PRESENCE IN EUROPE

Italian Company Known for Premium, High-Performance Motorcycles


Milwaukee, Wis., July 11, 2008 -- Harley-Davidson, Inc. (NYSE: HOG) today announced the signing of a definitive agreement to purchase the Italian motorcycle maker MV Agusta Group (MVAG). Under the agreement, Harley-Davidson will acquire 100 percent of MV Agusta Group shares for total consideration of approximately 70 million euros ($109 million), which includes the satisfaction of existing bank debt for approximately 45 million euros ($70 million). In addition, the agreement provides for a contingent payment to Claudio Castiglioni in 2016, if certain financial targets are met. MV Agusta Group is privately held, with the Castiglioni family owning 95 percent of MVAG shares.

The acquisition is expected to close in several weeks, pending the satisfaction of contingencies and receipt of regulatory approvals. Harley-Davidson intends to fund the transaction primarily through euro-denominated debt.

MV Agusta Group has two families of motorcycles: a line of exclusive, premium, high-performance sport motorcycles sold under the MV Agusta brand; and a line of lightweight motorcycles sold under the Cagiva brand. MV Agusta's F4-R motorcycle, powered by a 1078cc in-line four-cylinder liquid cooled engine, is rated at 190 hp. The company sells its products through about 500 dealers worldwide, the vast majority of them in Europe. In 2007, MVAG shipped 5,819 motorcycles. During 2008 MVAG has significantly slowed production due to financial difficulties.

"Motorcycles are the heart, soul and passion of Harley-Davidson, Buell and MV Agusta," said Harley-Davidson, Inc. Chief Executive Officer Jim Ziemer. "Both have great products and close connections with incredibly devoted customers. The MV Agusta and Cagiva brands are well-known and highly regarded in Europe. They are synonymous with beautiful, premium, Italian performance motorcycles," Ziemer said.

Harley-Davidson, Inc. plans to continue to operate MV Agusta Group from its headquarters based in Varese, Italy. Following closing, the first priority will be to appoint a leadership team to include a new Managing Director and to resume the manufacture of current models.

Current MV Agusta Group Chairman Claudio Castiglioni will continue in a leadership role as Chairman and will play a major role in future product development. Design Chief Massimo Tamburini will continue his leadership of MV Agusta Group's world leading sport-bike design studio.

"We take enormous pride in MV Agusta and Cagiva motorcycles," said Castiglioni. "Our riders seek an uncompromising experience in premium performance motorcycles. And with Harley-Davidson's deep understanding of the emotional as well as the business side of motorcycling, I have great confidence that our motorcycles will excite customers for generations to come."

According to Ziemer, the acquisition is intended primarily to expand Harley-Davidson, Inc's presence and footprint in Europe, complementing the Harley-Davidson and Buell motorcycle families. Retail sales of Harley-Davidson motorcycles have grown at a double-digit rate in Europe in each of the last three years, as the Company has increased its strategic focus on global markets.

"The acquisition of MV Agusta Group will enhance Harley-Davidson, Inc's position as a global leader in fulfilling customer dreams and providing extraordinary customer experiences. We look forward to a long relationship with the MV Agusta and Cagiva families of customers and employees," said Ziemer.



ENDS

http://www.superbikeplanet.com/2008/Jul/080711b.htm

 

[PAGoldsby]

Coming soon to an MV Agusta motorcycle near you: chrome forward controls, leather tassels for clip-ons, carbon-fiber halter tops and 300mm rear tires.

 

[JK]

Coming soon to an MV Agusta motorcycle near you: chrome forward controls, leather tassels for clip-ons, carbon-fiber halter tops and 300mm rear tires.

Next thing you'll know is that VW will buy Rolls Royce....

J.K.

Oh yeh, they already did.

 

[oldhway]

Wow, how cool is that? I think that might actually turn out to be a good thing. The Buell influence will be great for MV Augusta and to reviatlize Cagiva. I wonder if HD is looking at european production?

 

[Rod Sheridan]

In a soon to be reported exchange of technology, all 2009 Harleys will come with a center stand, clip ons, rearsets, and electrical systems with famous Italian reliability.......Rod.

 

[Mongo]

Cool

MV Augusta is in dire need of HDs deep pockets. HD is in need of the technical infusion. Win, win

 

[kbasa]

I'd love to see some of MV's sophistication show up in the Buell products. They're neat, but they still seem sort of cobbled up to me. That's probably not a valid assessment, given the new Rotax powered 1125, but it still sticks with me.

And I'd still love to have an M2 Cyclone.

 

[OldNuke]

Batwing fairing, Screaming Eagle package on an MV Agusta.....

 

[R80RTJohnny]

Makes me happy that Ducati is no longer with the Cagiva group.

 

[kbasa]

Batwing fairing, Screaming Eagle package on an MV Agusta.....

Variable intake tract length and Tamburini styling on a Buell?

 

[98lee]

An AMERICAN company buying a FOREIGN company???????

Haven't read of that in a long time.

I like good news for a change.

 

[98lee]

Wait, HD IS still US owned, Right??

 

[mika]

Investor Relations, Harley-Davidson

The MV Agusta news site just repeats the H-D release.

UKÔÇÖs MCN supplies some context for the deal.

In October 2003 Motorcycle-USA did a background piece on Claudio Casitglioni. When articles like this showed up it started rumors of sale that turn out to be right. First BMW purchased Husqvarna and now H-D picks up the balance.

I think this means big things for Buell, at least I hope so.


JK you don't need to worry about RR going to VW they already own Bentley.
What you are more likely to see from VW is a motorcycle.

 

[tessler]

What you are more likely to see from VW is a motorcycle.

Thanks for the linky, M1ka... Autoblog just posted the first images of the 09 Acura TL today (and boy am I glad I own a 3G!).

 

[mika]

Your welcome, and a big thank you to Yellow_S for the starting post.

 

[mika]

Thanks for the linky, M1ka... Autoblog just posted the first images of the 09 Acura TL today (and boy am I glad I own a 3G!).

world.honda.com/news

The front ends of cars look like faces. I canÔÇÖt decide if this is the face of a Japanese cartoon caricature or Joan Rivers in the car insurance commercial.

 

[Visian]

What you are more likely to see from VW is a motorcycle.

what i'd really like is an xbow

 

[scqtt]

The Buell influence will be great for MV Augusta

Like hell.

You think the Buell influence will help Tamburini?

Sorry, Tamburini has designed some of the most beautiful motorcycles ever made. Buell makes strange streetfighters with powerplants better suited for agriculture use. (very similar to BMW)

The best thing that could happen is that the HD brass will leave the Cagiva team alone when it comes to design while getting involved on the marketing side where their expertice is obviously situated. Looks like HD got "their" Ducati, just needs a little work.

 

[mika]

what i'd really like is an xbow

A X-Bow would be a GAS! But the four wheels I am longing for are

The current operator of the local version has parts I need to put my bike back together!



I think I leave Sunday. I miss having four dealers within striking distance.

 

[j-budimlya]

I hate to say this, but onee of the best design teams paired up with one of the worst.....who knows waht might come out of this....