Harley Davidson completed the sale of MV Agusta to Claudio Castiglioni, former owner of the marque.
UPDATE: An article in the Wall Street Journal has a few details from the 8K filing with the SEC. It’s probably a good thing they sold it, but as an investment, it certainly didn’t turn out well. Note to Harley, don’t buy Italian motorcycle companies.
In the filing Harley said it “contributed 20 million Euros to MV as operating capital” that was put in escrow and is available to the buyer over a 12-month period. The buyer is Claudio Castiglioni, who, with his brother Sergio, ran MV Agusta for years before selling it to Harley two years ago for about $109 million.
In the filing Harley also said it received “nominal consideration” from the buyer. In a subsequent interview the company said the specific amount it received was $3 Euros. A company spokesman said the terms of the transaction “reflect the realities of the current economic environment and the difficult conditions” in the sport-bike market.
Harley has previously write-downs totaling $162.6 million for the fair value of MV Agusta and began treating the unit as a discontinued operation after announcing its intention to sell it a year ago.
HARLEY-DAVIDSON FINALIZES SALE OF MV AGUSTA
MILWAUKEE, Aug. 6, 2010 — Harley-Davidson, Inc. (NYSE: HOG) has concluded the sale of its subsidiary, MV Agusta, to Claudio Castiglioni and his wholly owned holding company, MV Agusta Motor Holding, S.r.l., effective today. Castiglioni is the former owner of the Italian motorcycle maker and has served as MV Agusta’s chairman since 2008, when Harley-Davidson acquired the company.
In October 2009, Harley-Davidson announced its intention to sell MV Agusta as part of a new corporate strategy to focus resources on the Harley-Davidson brand. Since then, Harley-Davidson has held discussions with various potential MV Agusta buyers.
“MV Agusta is a proud brand and we wish Mr. Castiglioni and the company’s employees well,” said Harley-Davidson President and Chief Executive Officer Keith Wandell. “Our decision to divest MV Agusta reflects our strategy to focus our efforts and our investment on the Harley-Davidson brand, as we believe this provides an optimal path to long-term growth.”