Harley buys MV

Harley-Davidson has signed a deal to buy the MV Agusta and Cagiva group for a total of around US$140 million, half of which will be used to lay off the Italian group's debt.

That gets H-D 100 per cent of the company, which is currently 95 per cent owned by the Castiglioni family.

The move follows the recent separation of the Husqvarna part of the enterprise and its sale to BMW.

"Motorcycles are the heart, soul and passion of Harley-Davidson, Buell and MV Agusta," said H-D CEO Jim Ziemer. "Both have great products and close connections with incredibly devoted customers. The MV Agusta and Cagiva brands are well-known and highly regarded in Europe. They are synonymous with beautiful, premium, Italian performance motorcycles."

Perhaps the best news for fans of MV is that group chairman Claudio Castiglioni will remain involved with the marque.

"We take enormous pride in MV Agusta and Cagiva motorcycles," said Castiglioni. "Our riders seek an uncompromising experience in premium performance motorcycles. And with Harley-Davidson's deep understanding of the emotional as well as the business side of motorcycling, I have great confidence that our motorcycles will excite customers for generations to come."

Meanwhile Ziemer has been at pains to point out that MV is seen as a complement to H-D and Buell, and a means of increasing the company's 'footprint' in Europe.

The acquisition is a nice fit for Harley, covering market segments it clearly needs to be across if it is to become a niche player, albeit a very substantial one.