Harley-Davidson has bought MV Agusta!

[Sventek]

This is from the H-D website:

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.

Conference Call
Harley-Davidson, Inc. will hold a webcast conference call regarding the acquisition from 8:00 to 8:30 a.m. (central time) today, July 11, with Tom Bergmann, Executive Vice President and Chief Financial Officer, Harley-Davidson, Inc. To access the webcast, please log on and register at least ten minutes prior to the start time at Browser Update Required, under the Investor Relations section. A replay of the webcast will be available at the same location approximately two hours after the call concludes.
Company Background
Harley-Davidson, Inc. is the parent company for the group of companies doing business as Harley-Davidson Motor Company (HDMC), Buell Motorcycle Company (Buell) and Harley-Davidson Financial Services (HDFS). Harley-Davidson Motor Company produces heavyweight motorcycles and offers a line of motorcycle parts, accessories, general merchandise and related services. HDMC manufactures five families of motorcycles: Touring, Dyna®, Softail ®, Sportster ® and VRSC™. Buell produces premium sport performance motorcycles and offers a line of motorcycle parts, accessories, and apparel. HDFS provides wholesale and retail financing and insurance programs primarily to Harley-Davidson and Buell dealers and customers.
Forward-Looking Statements
Harley-Davidson, Inc. intends that certain matters discussed in this release are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as Harley "believes," "anticipates," "expects," "plans," or "estimates" or words of similar meaning. Similarly, statements that describe future plans, objectives, outlooks, targets, guidance or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this release. Certain risks and uncertainties are described below. Shareholders, potential investors, and other readers are urged to consider these factors in evaluating the forward-looking statements and cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included in this release are only made as of the date of this release, and Harley-Davidson, Inc. disclaims any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Although Harley-Davidson and MV Agusta Group have signed a definitive purchase agreement, there is no assurance that all of the contingencies will be satisfied or that the governmental approvals will be obtained in a timely manner or at all. The proposed acquisition may not occur if the conditions to completing the transaction are not satisfied in a timely manner.
In addition, Harley-Davidson intends to finance a portion of the consideration by borrowing funds and its level of indebtedness may increase as a result, which may cause Harley-Davidson to incur additional interest expense and limit Harley-Davidson's ability to obtain additional financing. It could also increase Harley-Davidson's exposure to general adverse economic and industry conditions and adversely impact Harley-Davidson, Inc.'s earnings per share. Furthermore, Harley-Davidson may have challenges successfully integrating or profitably operating the business of MV Agusta Group.
Financial Contact:
Amy Giuffre (414) 343-8002
Media Contact:
Bob Klein (414) 343-4433

[bertie]

i just cried

[Sumfun4me]

I think this is a good thing. Given the option of losing MV altogether, the HD buy-out should keep it going into the future. I would also think that HD will maintain the MV line as a separate entity, though time will tell. I reckon the first thing they should do is have a fire sale of MV Tamburini's at about $40k AUS - this should get them back in the black somewhat (where should I send my money?).

[monsta]

Originally Posted by Sumfun4me

I think this is a good thing. Given the option of losing MV altogether, the HD buy-out should keep it going into the future. I would also think that HD will maintain the MV line as a separate entity, though time will tell. I reckon the first thing they should do is have a fire sale of MV Tamburini's at about $40k AUS - this should get them back in the black somewhat (where should I send my money?).

I agree... the money that harley provide will only make MV stronger...

[MADOGA]

This is good I think? cant see it as a bad thing,
Brings more strength to Harley as a company.
Be interested to see how it goes with Harley, Buell and MV,
maybe get some MV heads for my Sporty in the future, like the Buells

[perdition]

agreed - the deal looks good and MV management stays the same - biggest thing i can see is joint MV and HD dealers..no biggie

[Deej]

well... thats the end of that then.

Shame. They were so perrrdy.

[RAVENGSXR]

i'll just sit here till Maxo drops in one of his photochop gems of a V2 MV Hargusta

[evo9ace]

cool that should slow them down
wonder when we will see a belt driven MV with an air compressor strapped to the side for that "real" bike noise

[smeghead]

.. maybe Mr Tamburini can give the Buell 1125R a style makeover cos damn it needs it

[Broms]

Sounds like a bargain price to me

[Sventek]

Originally Posted by Broms

Sounds like a bargain price to me

Yep - I can't help but wonder about their intentions in the longer term...

[Deej]

I bet you the board of Ducati Motor Holding S.p.A. are having a little chuckle, digging each other in the ribs, and opening a bottle of Vino right now.

[Evolution]

Castiglionis passion, Tamburinis' design brilliance and Harleys money. Awesome combination I reckon.

The most avant garde Ducati of recent history was designed by Tamburini. He followed that up with the Agusta F4. Two iconic motorcycles. Looking forward to their next superbike.

[MADOGA]

Originally Posted by Sventek

Yep - I can't help but wonder about their intentions in the longer term...

First MV then all the Jap brands, then Harley will own all bikes available!

[monsta]

just keepin it in the family... Aermacchi Motorcycles

[Xuaxace]

I doubt HD will influence MV directly, and the money is going to let MV grow stronger. So i'm quite happy with the news, i didn't want to see mv disappear and for the last couple of months things looked very grim.

[Tenchi]

Aaah, sorry Deej... looked through general biking and news, couldn't find it. Should have thought of the moto italiano.

I wonder if this means I can go down to my local Harley dealer at some point and buy a MV Augusta...

[Deej]

Originally Posted by Tenchi

Aaah, sorry Deej... looked through general biking and news, couldn't find it. Should have thought of the moto italiano.

Tis coo. Happens.

[Hornet]

If HD keep their own designer out of MV and MV keep things looking the way they have so far, I don't see any problem. If the money from HD can help make more MVs so that the profits increase for MV, then this should be a good thing.

A lot of ifs and shoulds in there...