Latest Posts:
Asphalt & Rubber
Tag

acquisition

Browsing
News

MAG Acquires Motorcycle Superstore

By 2 Comments

The Motorcycle Aftermarket Group (MAG) continues to be a force of acquisition in the motorcycle industry, as the group has announced its purchase of Motorcycle Superstore. Forming from the purchase a Death Staresque retail group with Motorcycle Superstore and J&P Cycles, MAG has added one of the largest online retailers of sport, street, & off-road motorcycle products to its existing interest in the largest online v-twin parts and accessories retailer.

“Since founding Superstore 14 years ago, I’ve seen it grow from a humble start-up to one of the nation’s largest retailers in the powersports industry,” said Motorcycle Superstore Founder Don Becklin. “Joining forces with J&P Cycles and creating the Retail Group represents an exciting new opportunity. Superstore has found a strategic partner that opens the door to more success and growth for all parties involved.”

Keep Reading
By
News

Audi to Buy Ducati?

By 17 Comments

It has been almost a year now since we broke the news that Ducati Motor Holding was up for sale, and I still can’t tell if the appropriate metaphor for the ongoing acquisition is a game of musical chairs or Russian roulette. Vying for a seat or putting the chamber to its temple, our latest contestant in “Who Wants to Buy Ducati” is Audi, the four-ringed German car manufacturer. Reported to have a right of first refusal, Audi allegedly has until mid-April to finalize a deal with Investindustrial (Ducati’s main investor) to buy Ducati from the Italian investment group.

Though Ducati sold over 40,000 motorcycles in 2011, the Italian company has roughly €800 million in debt on its books. This means that any company interested in buying Ducati would have to assume the Italian company’s debt onto its own books, which changes the actual purchase price of Ducati dramatically. For its part, Audi is rumored to be making an offer in the €850 million range, which would put the actual purchase value of Ducati at over €50 million, and could put as much as €100 million on the table for Investindustrial to take.

Keep Reading
By
News

Hero MotoCorp Eyes Purchasing Ducati? Erik Buell Racing?

By 7 Comments

Two weeks and two separate rumors about Hero MotoCorp’s acquisition warpath. Last week the Indian motorcycle manufacturer was said to be eyeing a minority equity stake in Erik Buell Racing. Having already hired the American sport bike maker to help innovate on some of Hero’s upcoming small displacement machines, the two companies sweetened the deal with Hero becoming the title sponsor to EBR’s AMA Pro Superbike racing effort.

This week the spotlight shines on Ducati Motor Holding, which has quietly been for sale for almost a year now. Originally wooing an acquisition from Mercedes-Benz, the Italian motorcycle manufacturer has been linked to a variety of other companies, as well as a public offering on an Asian stock index. With our sources telling us that Ducati has been trimming the fat from its books in order to make its earnings more attractive, Hero MotoCorp is the latest potential buyer to enter the fray and to talk to bankers about a Ducati acquisition.

Keep Reading
By
News

Ducati Valued at €1 Billion – Acquisition Talks Continue

By 8 Comments

The big non-racing news today is that Ducati is reportedly up for sale, with a price tag of €1 billion. To be honest, I’m fairly amused by how many emails I found in my inbox on this topic, and by how far this news item is spreading in the motorcycle news sector today. The buzz of course is that Ducati may be purchased by any number of large manufacturing firms, with smart money on a European automaker.

Either asleep at the switch for the past year, or just grossly inept at understanding financial news (guys, there is a big difference between one billion euros and one billion pounds), collectively the motorcycle news industry is reporting on an story that we first published nine months ago like it is a shot out of the dark.

For those that missed our ongoing coverage of the topic, Investindustrial actively spent the better part of 2011 looking to divest its majority position in Ducati Motor Holdings, and was in serious talks with Mercedes-Benz over the acquisition. Our Bothan Spies told us back in April that Investindustrial was very eager to sell Ducati to Mercedes-Benz, while the zie Germans were being very, well German about the whole thing.

With nothing coming to fruition on the Mercedes deal, Ducati again made waves in August when it was reported that the company was interested in making a private stock offering in 2012. Today’s news of course is the logical extension of that announcement, as it is both 2012 and Investindustrial is rumored to be in talks with several possible private buyers for Ducati. While none of this news should surprise anyone, what is of note is the price tag being attached to Ducati is €1 billion.

Keep Reading
By
News

Cycle World Sold to Bonnier Corporation

By 1 Comment

Officially official now, Cycle World has been sold to print media giant Bonnier Corporation, owner of such titles as Popular Science, Parenting, Field & Stream, and other niche-market publications. Acquired from the Hearst Corporation, Cycle World will maintain its current editorial and writing staff as it moves to Bonnier, and from what we’ve gathered talking to CW employees the transition is being viewed favorably, and is in the best interest of the publication. This is the second time Cycle World has changed hands this year, as the publication was sold by Hachette Filipacchi to Hearst this past February.

Keep Reading
By
News

Indian Produces First Motorcycle Under Polaris Ownership

By 16 Comments

Indian Motorcycle has released some photos of the first 2012 Indian Chief to roll out of the company’s Spirit Lake, Iowa plant — the first motorcycle to be produced by the oldest American motorcycle company since its acquisition by Polaris. Nicknamed the “Polaris-Indian Bike #1,” the new Chief is not terribly different from the 2011 Indian Chiefs built under the old regieme, but it does symbolize the next chapter in the iconic company’s history.

Keep Reading
By
News

Can We Just Let Moto Morini Die Already? – New Company Auction Set for July 19th

By 8 Comments

If Moto Morini was a household dog, someone would have taken it out to the backwoods and put the damn thing down already. Yet, Administrators in charge of handling the bankrupt company’s assets are gearing up for yet another attempt to auction the brand, building, anything in order to get some euros back for Moto Morini’s creditors. Set to take place on July 19th, the auction aims to sell the company and its premises for €4.65 million (down from €5.5 million), but will strike a deal on the assets for a cool €1.95 million (also down from €2.6 million). Will this make a difference? Probably not.

Keep Reading
By
Opinion/Editorial

Zero Motorcycles Adds Polaris Executive to Board of Directors – But What Does It Mean?

By 10 Comments

Zero Motorcycles has quietly announced some interesting news: that Mark Blackwell, V.P. of Motorcycles at Polaris Industries, will be joining the electric motorcycle company’s Board of Directors. With a plethora of reasons as to why an industry veteran like Blackwell would join Zero’s board, it’s been no secret that the Scotts Valley company has been collecting seasoned industry professionals like pokemon characters, seemingly building a brain trust of people who actually know how to run a motorcycle company.

Blackwell’s addition to Zero is interesting because it could signal a relationship with the Polaris V.P. that goes beyond merely an advisory/visionary position, which is the core responsibility of a companies board. The timing is interesting as well, as Polaris has been on a buying spree, first acquiring the original American motorcycle company brand: Indian Motorcycles, and a few days later electric car manufacturer GEM. With a Polaris executive sitting on Zero’s board almost immediately after these aquisitions, one has to wonder if this isn’t a precursor to some sort of larger arrangement between the two companies.

Keep Reading
By
News

How Does Polaris View the Indian Acquisition?

By 8 Comments

Polaris released some interesting info this past week to its stockholders, perhaps the highlight of which was how the Minnesota-based company views its acquisition of the Indian Motorcycle brand. Disclosing a brief summary of its plans, it’s clear that Polaris aims to go after the heavy-cruiser segment with a two-pronged approach, much in the same manner as we postulated back on Wednesday after news of the acquisition broke.

More important than stroking our own egos, two pieces of interesting insight came from Polaris’s SEC filing 8-K filing. First was a glimpse into what the purchasing price of Indian could be, as a slide to investors shows Indian’s 2010 revenue as being $11 million, which would peg a baseline asking price of about $9 million, though the perceived brand value could raise that price. The second juicy morsel is how Polaris sees Indian fitting in with Victory, showing the potential of tripling Polaris’s motorcycle sales in the future.

Keep Reading
By
Opinion/Editorial

The Indian Gambit – Polaris Puts Harley-Davidson on Notice

By 27 Comments

Before yesterday afternoon, I had a hard time getting excited about Polaris. I think they make snowmobiles…but I’m not sure. This is how engaged with their brands I was, but of course this has all changed with the news that Polaris Industries, Inc. has acquired Indian Motorcycle for still undisclosed terms. Covering the business strategy side of motorcycling for the past two and a half years, I can tell you that there are few moves or decisions that strike me as truly inspired, but that events of the past 24 hours are surly Mensa-worthy.

Before I can talk about Polaris and Indian, I have to talk about another motorcycle company: Harley-Davidson. Kingdoms are fated to topple, but looking at Harley-Davdion and its dominance in the American motorcycle scene, let alone in popular culture, the legacy of the Milwaukee company seems assured to endure the test of time. So many companies have tried to be the next Harley, and all of their failures reinforce that concept that no company does “Harley” better than Harley-Davidson. Virtually creating the the legacy cruiser segment, and Harley-Davidson’s success in this regard is also the double-edged sword that is slowly prostrating the Milwaukee brand.

If I had to give one piece of advice to a company wanting to compete with Harley-Davidson, it would be real simple: don’t. Seemingly at the risk of painting itself into a corner, Harley-Davidson has refined its marketing message so thoroughly that it has honed in on a particular type of rider, and exhibits such a distinct persona of motorcycling that the company’s identity has found itself heading full-speed down a one-way street of branding. Thus the low-hanging fruit of competing with Harley-Davidson is to go after the brand where it cannot go.

Keep Reading
By
News

Polaris Acquires Indian Motorcycle

By 14 Comments

Polaris Industires has just announced its acquisition of the historic Indian Motorcycle company. Terms of the deal have not been disclosed, but the deal sees one of the most historic names in American motorcycling finding a home with a major player in the motorcycle industry. The move is an interesting one for Polaris, as the company already owns cruiser and touring motorcycle manufacturer Victory Motorcycles.

According to the company press release, Indian will function as an autonomous business unit, but will likely gett help from Polaris’s engineering department, along with the obvious supply chain and purchasing power of the larger brand.

Keep Reading
By