Content Wrapper

[rickaren]

Harley hires Italian firm to help sell MV Agusta


Nov. 19, 2009

Harley-Davidson Inc. said Thursday it has selected the investment banker BNP Paribas of Milan, Italy, to assist it in the sale of the Italian motorcycle company it bought last year.

The Milwaukee motorcycle manufacturer announced plans to sell MV Agusta last month as part of a strategy to refocus all of its efforts on the global expansion of its core Harley-Davidson brand. The sale of MV Agusta was announced at the same time that the company said it would discontinue the Buell motorcycle brand.

Harley-Davidson said it's currently identifying potential buyers for MV Agusta. In July 2008, Harley acquired MV Agusta for about $109 million. The Italian company produces a line of premium sport motorcycles under its brand and a line of lightweight bikes under the Cagiva brand.

The Italian firm produced about 5,800 bikes last year, compared with 330,619 that Harley shipped to its dealers.

But more than 80% of MV Agusta's sales are in Europe, an important and largely untapped market for Harley as it seeks to become more of a global company and less dependent on U.S. motorcycle sales.

Through September, MV Agusta posted sales of $42.9 million and a loss of $52.6 million. The loss includes an $18.9 million goodwill impairment charge linked to the fact that the value of the business has dropped with the European economic downturn and its impact on the sport bike market, company chief financial officer John Olin said an investor conference call last month.

LINK: Harley hires Italian firm to help sell MV Agusta - JSOnline