Within the motorcycle industry, Asphalt & Rubber has earned itself a reputation for breaking stories from our so-called “Bothan spies”, as insiders often tip us off to intriguing stories and happenings in the two-wheeled realm.
Just a few weeks ago, we got one of those interesting tips, one that said that Dainese was being put up for sale. So, we called the bossman himself, Dainese CEO Cristiano Silei (an announcement too that A&R was able to break because of our Bothan spies), to see what the story was all about, and indeed if the rumors were true.
The call resulted in a terse answer, and perhaps an expected response, but Silei also provided an interesting explanation of Dainese’s current investment position, and what results the company has seen since its purchase three years ago (another story that our Bothans were first to get the word on).
Rumors and reports continue to swirl around Ducati, as the Italian manufacturer is linked to one brand or another for a potential divestiture from the Volkswagen Group. And now, the latest name being thrown into the hat is none other than iconic American brand Harley-Davidson.
In a report by Reuters, Harley-Davidson is linked to buying Ducati by unnamed sources, with a purchase price that is pegged around €1.5 billion, a number that has been put together by the bean-counting minds at Goldman Sachs.
Volkswagen is said to be taking bids on Ducati this July, which means the fate of the Italian motorcycle brand could be decided by the end of this year.
Last week, I was ready to start polishing the obituary for MV Agusta – the Italian company seemingly in an impossibly terminal state.
Italy’s Guardia di Finanza had found that the Italian company had been using the social security contributions of its workers to pay down the money owed to parts suppliers (something MV Agusta disputes is the case), and earlier this year MV Agusta CEO Giovanni Castiglioni was investigated for irregularities on his tax return.
All of this is on top of the ever precarious financial situation MV Agusta has been in for the past year, which has resulted in the company looking to restructure its €50 million debt in the Italian court system, furlough a good portion of its workforce, and reduce its production volume to roughly 9,000 units per year.
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 speculation about RevZilla and Cycle Gear can stop now, as the brands are finally talking about their plans together for the future.
In a letter posted to RevZilla’s in-house publication, Common Tread, RevZilla CEO Anthony Bucci announces that RevZilla will be acquired by a new holding company, which will also own Cycle Gear.
The holding company’s board of directors will include Bucci, and his fellow RevZilla founders Nick Auger and Matthew Kull, as well as the private equity firm J.W. Childs, which bought Cycle Gear back in 2015.
While Bucci’s letter to RevZilla customers states that the two brands will only be “sister companies” that will operate independently of each other, his FAQ on the subject leaves the door open for collaborations between the two brands, which would be the obvious benefit of their new ownership structure.
Respected newswire Reuters is reporting that Cycle Gear is close to finalizing the purchase of motorcycling e-commerce giant RevZilla. Citing a source “familiar with the matter” at hand, Reuters suggests that the deal could close in the next coming days, with the new venture worth between $400 million and $500 million.
If true, this acquisition would mark a titanic shift in the motorcycle retail space, with America’s largest brick and mortar chain combining with the industry’s most prominent online parts and apparel purveyor.
A story we have been chasing for some time now, Lino Dainese has finally found a buyer for his namesake company, Dainese. The purchaser is the aptly named private equity firm Investcorp, which is headquartered in Bahrain, and has additional offices in New York, London, Riyadh, and Abu Dhabi.
Buying 80% of the company’s stock for a reported €130 million, Investcorp’s valuation of Dainese would therefore be set at €162.5 million. The other 20% of the company is retained by Lino Dainese, himself.
Red Bull are poised to make two dramatic announcements over the next two weekends, we can exclusively reveal. At next weekend’s Bahrain F1 race, the Austrian energy drink firm will announce its withdrawal from the premier four-wheeled racing series at the end of 2014.
A week later, at the Austin MotoGP round for which it is the title sponsor, Red Bull is to announce that it is to purchase Bridgepoint Capital’s remaining stake in MotoGP, and take over the running of the series.
Sources in the private finance industry with knowledge of the situation say that Bridgepoint has been looking to rid itself of its motorcycle racing business for some time. The private equity firm had acquired 71% of Dorna in 2006, at the peak of MotoGP’s popularity, reputedly for £400 million.
Since then, they have seen the value of their investment drop, and have been looking to get their money back from the deal ever since. The sale of a 39% stake in Dorna to the Canadian Pension Plan Investment board was the first step in recouping their investment.
That deal was rumored to be worth €400 million, or just over 70% of their initial outlay. Sources with knowledge of the situation say that Red Bull is to acquire the remaining 32% of Dorna for around €300 million , but with full control over the series.
Speaking to the VeneziePost (subscription required in order to read the article), Dainese Founder Lino Dainese has confirmed the news we broke last month about the Italian apparel manufacturer being in talks for investment, or possible acquisition.
According to the report, Dainese says the company came close to inking a deal with an unnamed private equity group, but terminated the talks because the parties could not come to terms with their agreement.
Motorcycle industry gossip is at a fever pitch this week with speculation that Italian motorcycle apparel manufacturer Dainese is up for sale. Adding credence to that rumors, Asphalt & Rubber has received a number of tips about the possible sale of the company, with a private investment group cited as a possible buyer.
When we approached with this information, Dainese simply said that rumors were simply that, rumors. However it is worth noting that at the helm of the company for the past few months has been interim-CEO Federico Minoli, the same man that lead Ducati Motor Holding to being acquired by Texas Pacific Group, and later took the Italian motorcycle manufacturer public on the New York Stock Exchange.
Bridgepoint Capital, the private equity firm which owns Dorna and Infront Sports and Media, has sold a 39% stake in Dorna to a Canadian pension fund, Canadian media are reporting. According to a report from Reuters, Canada Pension Plan Investment Board reportedly paid €400 million for the 39% stake in Dorna, and will join Bridgepoint and Dorna’s management – in the figure of Carmelo Ezpeleta – in running the company.
The sum paid for the 39% stake gives Bridgepoint a healthy profit. The UK-based private equity firm purchased Dorna from CVC back in 2006, when CVC purchased the rights to Formula One and were forced by the European Competition Commission to sell the rights to the MotoGP series first. Bridgepoint is said to have paid some £400 million (about €550 million) for the 71% stake held by CVC when they took over the company.
The Canada Pension Plan Investment Board is buying into more than just MotoGP, however. With the consolidation of Infront Motor Sports under Dorna, CPPIB now has a stake in both MotoGP and World Superbikes. This sale also provides the rationale for Bridgepoint’s decision to bring both series under a single umbrella: not only does it add value to the package on offer to CPPIB, but it also eliminates competition between the two series, allowing both to grow without cannibalizing each others audience and potential sponsors.
This, rather than any power struggle between Dorna CEO Carmelo Ezpeleta and Infront bosses Paolo and Maurizio Flammini, is the more important reason for combining the two series. Ezpeleta may have come out on top in that internal power struggle, but it was as a by-product of the proposed sale, rather than as a direct intent.
News comes to us from across the Bay this morning, as Mission Motors has announced that it has closed a $9 million Series B financing round led by Warbug Pincus. A global private equity firm with $30 billion in assets under management, Warbug Pincus invested $7.5 million in Mission Motors (with room up to an additional $41 million), while Infield Capital, one of Mission’s original investors, doubled-dipped back into the company, presumably with the remaining $1.5 million for the series.
The use of funds will go towards Mission Motors’s continued venture of supplying OEM customers with electric and hybrid drive train solutions — an exclusive endeavor the company has been undertaking for over a year now, but apparently something the less-informed motorcycle press is only now taking notice of today.