Harley-Davidson takes over MV Agusta/Cagiva
Last July, Harley-Davidson signed an agreement to purchase Italian motorcycle maker MV Agusta/Cagiva. Under the deal, Harley-Davidson got 100 percent of MV Agusta shares for roughly 70 million Euros, which includes payment of an existing bank debt of approximately 45 million Euros. Harley-Davidson intends to fund the deal using Euro-denominated debt. The transaction will also provide for a conditional payment to Claudio Castiglioni (owner of 95% of MV Agusta shares) in 2016, if the arrangement proves profitable and certain profit targets are met by Harley-Davidson.
Harley-Davidson CEO Jim Ziemer claims that the purchase of MV Agusta is intended to expand his Company’s presence in Europe by feeding off the market share already enjoyed by loyal and devoted customers of the Italian brand. In the last three years, retail sales of Harley-Davidson have grown at a double-digit rate. The American motorcycle company has increased its strategic focus on global markets.
Harley-Davidson will allow MV Agusta to maintain its current operations from Varese, Italy, and continue the production of its current lineup of motorcycles. The Italian management team of current Chairman Claudio Castiglioni and Design Chief Tamburini will be allowed to assume important roles in future product development as well as heading the impressive sport-bike design studio of MV Agusta.