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.
The future of MV Agusta has hinged on a crucial court decision for the past five months now – one that would allow the Italian motorcycle brand to restructure its debt, thus reducing its financial liabilities and freeing up a greater portion of its cash flow for continued production. News comes today from Varese, Italy that a local court has approved MV Agusta’s new business plan, and allowed the motorcycle manufacturer to restructure its debts with creditors and suppliers. This is positive news for MV Agusta, and it sets in motion a number of possibilities for the Italian brand, namely closing its investment deal with Black Ocean, an Anglo-Russian private equity firm.
To call the last couple of years for MV Agusta turbulent would probably be understating the situation. The company has struggled for financial stability ever since its re-acquisition by the Castiglioni family, and that struggle has recently come to a zenith with the firms debt restructuring and investment by the Anglo-Russian investment group Black Ocean. With that comes some harsh realities, namely that MV Agusta will not be producing a new superbike any time soon, as the cost of the project exceeds the Italian manufacturer’s capabilities – so said MV Agusta CEO Giovanni Castiglioni while talking to Alan Cathcart for Australian Motorcycle News.Instead, the company will focus on a new four-cylinder Brutale model, which will get a displacement increase to 1,200cc.
Last week, I was ready to start polishing the obituary for MV Agusta – the Italian company seemingly in an impossibly terminal state. Now it seems MV Agusta’s fortunes are changing, with the Italian motorcycle maker signing an agreement with the Black Ocean investment group to recapitalize MV Agusta. Details of the pending transaction haven’t been released, but we can assume that the increase in capital will help ease MV Agusta’s relationship with suppliers, get workers back on the assembly line, and continue the development of new models. The €20 million question though is whether Black Ocean’s investment will mean the departure of AMG, the German auto brand acting now like an albatross around MV Agusta’s neck.