Friday, August 6, 2010

Buyer’s Remorse: H-D Sells MV Agusta Back To The Guy They Bought It from

Harley-Davidson announced today that it has concluded the sale of its subsidiary, MV Agusta, to Claudio Castiglioni and his wholly owned holding company, MV Agusta Motor Holding. Castiglioni is the former owner of MV, and has acted as its chairman since 2008, when the H-D bought the company.

Harley bought MV for about $109 million in a deal that included the satisfaction of existing debts of about $70 million, and a bonus for Castiglioni in 2016 if certain financial targets were met.

Harley isn’t saying how much it got for MV in the deal to sell it back to Castiglioni. Industry insiders are guessing H-D lost money in the deal, and are calling it “a restocking fee.” There is so far no truth to the rumor that the sell-back was delayed while Harley employees searched their pockets and desk drawers for the original receipt.

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