MV Agusta Closes Deal with Russian Investors

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MV Agusta has finally closed a very important funding round, getting equity investment from ComSar Invest, which is backed by the Black Ocean Group, which in turn is owned by Russian billionaire Timur Sardarov.

The move sees MV Agusta able also to repurchase its stock from Mercedes AMG, which previously owned a 25% stake in the Italian motorcycle manufacturer.

The details of the ComSar deal however have not been disclosed, though we do know that the deal includes enough cash to finish MV Agusta’s recapitalization plan with its creditors and to begin its new, more focused, business plan for new models and motorcycle production.

According to MV Agusta’s press release, the newly financed recapitalization plan has already been approved by a quorum of the creditors.

What we do know from the investment plan is that MV Agusta Motor Holding will now own 100% of MV Agusta Motor S.p.A. – the business arm that focuses on motorcycle production, which is separate from the design center and racing programs.

In turn, GC Holding (the holding company owned by MV Agusta CEO Giovanni Castiglioni) will have a majority position in the ownership of MV Agusta Motor Holding, while ComSar Invest will have a “strong minority” position in the brand – possibly up to as much as 49% of the company.

“The transaction with ComSar Invest in our holding company through a capital increase and the acquisition of the shares previously held by Mercedes AMG in MV Agusta Motor S.p.A., represents an important milestone for our plan which has as a main objective the reinforcement of MV Agusta core business: the production of high-performance, high end motorcycles,” said Giovanni Castiglioni, President of MV Agusta.

“In the last 12 months the implemented measures, has brought MV Agusta back in positive cash flow generation, allowing to complete the restructuring plan and to consistently support product development and consolidation of our key markets.” 

Adding to that statement, Timur Sardarov said: “We will focus our funding to reinforce MV Agusta sales network and service and our knowledge in the technology fields, web and marketing to reach and enhance new markets, strengthen our digital and social presence enlarging MV Agusta’s consumer base.”

Source: MV Agusta