Business – Harley-Davidson buys MV Agusta and Cagiva – Used HARLEY-DAVIDSON

ACQUISITION

Harley-Davidson acquires MV Agusta and Cagiva

Business - Harley-Davidson buys MV Agusta and Cagiva - Used HARLEY-DAVIDSON

The American Harley-Davidson (Harley and Buell) has just concluded an agreement for the acquisition of the Italian group MV Agusta (MV Agusta and Cagiva) for a sum of 70 million euros, which includes the assumption of the debt of MV Agusta estimated to 45 million euros.

The American manufacturer Harley-Davidson – which owns the Harley-Davidson and Buell brands – has just concluded an agreement for the acquisition of the Italian group MV Agusta – brands MV Agusta and Cagiva – for a sum of 70 million euros.

This amount, which includes the assumption of the debt of MV Agusta estimated at "Around 45 million euros", will mainly be paid to the Castiglioni family, which controls 95% of Agusta’s capital.

As for the current chairman of the board of directors of MV Agusta Group, Claudio Castiglioni, he should retain his functions after the acquisition, which is to be finalized in a few weeks. Depending on the financial results obtained following the acquisition, Mr. Castiglioni could also receive a variable part by 2016.

MV Agusta Group produced only 5,819 models in 2007 and has "significantly reduced production in 2008, due to financial difficulties", says the press release.

With this acquisition of the MV Agusta group, which will remain based in Varese, Italy, Harley-Davidson pursues its development objective in Europe. "Motorcycles are the heart, soul and passion of Harley-Davidson, Buell and MV Agusta", rejoiced Jim Ziemer, chief executive officer of Harley-Davidson: "the two groups produce good motorcycles and they share incredibly loyal and passionate customers. In Europe, the MV Agusta and Cagiva brands are renowned and synonymous with high-performance, beautiful and top-of-the-range Italian motorcycles".

Next step for Harley-Davidson: appoint a management team with a new general manager and resume production of current models. Claudio Castiglioni will retain a leading role as chairman and Massimo Tamburini, the famous designer, will continue to lead the design studio MV Agusta.

"With Harley-Davidson and his deep knowledge of the emotional and business side of motorcycles, I am very confident that our motorcycles will win over customers for generations.", for his part said Mr. Castiglioni.

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