KTM Takes Over GasGas – Purchases 60% of Shares

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Remember that day when KTM bought a struggling dirt bike brand? No, we’re not talking about Husqvarna again, because today Stefan Pierer and his team acquired 60% of the shares of Spanish dirt bike marque GasGas.

The acquisition is actually an interesting one between KTM and GasGas’s owner, Black Toro Capital, as it sees the Austrian conglomerate “partnering” with its Spanish counterpart, primarily on electric dirt bikes.

According to reports, the partnership was made so that KTM could increase its offering for electric motorcycles and e-bikes, while the offerings from GasGas and Torrot could be sold through KTM and Husqvarna’s extensive dealership network.

This makes today’s business transaction a rather healthy one for all the parties involved, as it helps propel KTM forward on the upcoming electric motorcycles arms race, and it also gives the Austrian brand a stronger foothold on the booming e-bike business.

For GasGas, the news is a lifeline for the small dirt bike brand, and this is because an owner like KTM gives the Spaniards the two things they need most: more cash and larger distribution.

Production for GasGas branded dirt bikes will remain in Spain, with the expectation that this deal will help fuel new enduro and trials machines, which have been the best-sellers in GasGas’s off-road lineup.

What remains now is to see whether European regulators will allow the acquisition to go through. With KTM already the largest brand in the off-road space, it is easy to see how the Austrians are becoming a monopoly in the space.

Gobbling up dirt bike brands like Husaberg, Husqvarna, and now GasGas and Torrot, we are seeing KTM being the consolidating forces in the off-road sector.

Source: Economic Times