Harley-Davidson will pay about 70 million euros ($111 million Cdn) for the MV Agusta Group. The deal was announced this morning.
The purchase will bring into the Harley family two lines of motorcycles: MV Agusta with its exotic high-perf F4-R and the 1078 Brutale RR, and Cagiva with a line of lightweight street bikes.
The deal is expected to close in a couple of weeks, and will include paying-off a 45-million euro debt for the MV Agusta Group, and a future payment to Group owner Claudio Castiglioni, in 2016, if certain financial goals are achieved.
Harley-Davidson will run MV Agusta from the Italian group’s home in Varese and will start things off by setting up a new team of leaders to resume manufacture of current models. MV Agusta production had slowed because of money problems.
Castiglioni, whose family owned most of the Group shares, will stay on as chairman and he and design chief Massimo Tamburini will continue to direct motorcycle development.
"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."