Mercedes-AMG Acquires 25% of MV Agusta

10/31/2014 @ 5:15 am, by Jensen Beeler17 COMMENTS

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One of the worst-kept secrets in the motorcycle industry, Mercedes-AMG has now officially acquired a 25% stake in MV Agusta S.p.A. The news also sees Mercedes-AMG and MV Agusta signing a long-term partnership agreement, as well as collaboration on future sales and marketing efforts.

Neither Mercedes-AMG, nor MV Agusta, are talking the price of the 25% investment, though rumors peg the cost of the deal around €30 million — a very good valuation compared to the €747 million Audi paid for Ducati Motor Holding just two years ago. Also as a part of the agreement, Mercedes-AMG will appoint one member to MV Agusta’s board of directors.

“In MV Agusta, we have found the perfect two-wheel partner for Mercedes-AMG,” said Tobias Moers, Chief Executive of Mercedes-AMG GmbH. “This manufacturer with a long tradition and Mercedes-AMG are connected not only by a long and successful racing history, but also by shared values and goals for the future – allowing the experience of utmost perfection, optimal performance and motorsport technology for the road.

“The cooperation with MV Agusta also underscores the importance of AMG as the sports-car and high-performance brand of Mercedes-Benz Cars. The partnership provides us with an entry into a world of additional high-performance enthusiasts,” Moers finished.

Giovanni Castiglioni, President and CEO of MV Agusta Motor S.p.A., added that “MV Agusta and Mercedes-AMG are a perfect brand fit: Two complementary companies that stand for design, high performance and excellence. Mercedes-AMG will help MV Agusta to further expand globally and to accelerate our growth. The uniqueness of MV Agusta will further enhance Mercedes-AMG’s leadership in the high-performance segment.”

For MV Agusta, the news is quite a coup, as the investment from Mercedes-AMG means access to capital and financing, which the Italian company has desperately needed since its purchase from Harley-Davidson. MV Agusta’s future depends on the company’s ability to grow into a full-range motorcycle brand, with strong presences in key markets like the USA and Western Europe.

The catch-22 to that statement though is that it will take significant investments in money and resources to make the changes necessary to MV Agusta. With the roughly 30 million euros that Mercedes-AMG brings to the table, along with resources in marketing, sales, and distribution, MV Agusta might finally be able to grow from being a boutique Italian marque, to a true international motorcycle company.

For Mercedes-AMG, the move keeps it on par with its fellow German automakers. Just as Lamborghini AG was the true purchaser of Ducati Motor Holding, we see again the performance arm of a German manufacturer making an acquisition on paper for its larger benefactor. The deal has the potential to help AMG with CAFE emission standards, as well as adding a two-wheel cross-over option for would-be enthusiasts.

Though the road ahead for MV Agusta is still a difficult one, we imagine the bubbly is flowing right now in Varese, and rightfully so.

Source: MV Agusta