Company Expands European Presence with Premium Italian Motorcycle Company
MILWAUKEE, Aug. 8 /PRNewswire-FirstCall/ -- Harley-Davidson, Inc.
(NYSE: HOG) today announced the completion of its purchase of the
privately-held Italian motorcycle maker MV Agusta Group. The Company has
acquired 100 percent of MV Agusta Group shares for total consideration of
approximately 70 million euros ($108 million), which includes the
satisfaction of existing bank debt for approximately 45 million euros ($69
million).
"We are thrilled to welcome the MV Agusta family of customers and
employees into the Harley-Davidson family of premium motorcycle brands,"
said Harley-Davidson, Inc. Chief Executive Officer Jim Ziemer. "Our primary
focus with this acquisition is to grow our presence and enhance our
position in Europe as a leader in fulfilling customers' dreams,
complementing the Harley-Davidson and Buell motorcycle families," Ziemer
said.
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.
MV Agusta Group adds two lines of motorcycles to the Harley-Davidson,
Inc. family: a line of exclusive, premium, high-performance sport
motorcycles sold under the MV Agusta brand; and a line of lightweight sport
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.
In conjunction with finalizing the acquisition, Harley-Davidson has
named Matt Levatich as Managing Director of MV Agusta Group. Levatich, 43,
joined Harley-Davidson in 1994 and has served in a variety of roles,
including significant positions in Harley-Davidson Europe sales and
marketing, based in England. He headed Harley-Davidson materials management
as Vice President for four years and most recently was Vice President and
General Manager of Parts and Accessories and Custom Vehicle Operations.
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), Harley-Davidson Financial Services (HDFS) and MV Agusta
Group (MVAG). 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(R), Softail (R), Sportster (R) and VRSC(TM).
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. MVAG produces premium, high-performance sport
motorcycles sold under the MV Agusta brand and lightweight sport
motorcycles sold under the Cagiva brand.
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.
In addition, Harley-Davidson financed a portion of the consideration by
borrowing funds and its level of indebtedness increased 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.
SOURCE Harley-Davidson, Inc.
 back to top
Related links:
http://www.harley-davidson.com
CONTACT:
Financial Contact, Amy Giuffre,
+1-414-343-8002, or media, Bob Klein, +1-414-343-4433, both of
Harley-Davidson, Inc.
|
