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Jul 20, 2007

Updated: BMW Buys Husqvarna From MV Agusta

Husqvarna Motorcycles acquired by BMW Motorrad

Willow Grove, PA (USA) -- Cagiva USA announces that its parent company, MV Agusta Motor S.p.A, has sold the Husqvarna motorcycle brand to BMW Motorrad.

The agreement was signed in Italy on July 19, 2007 by MV Agusta Motor S.p.A. president Claudio Castiglioni and Dr. Herbert Diess, General Director of BMW Motorrad. The contract will come into full effect upon final approval by EU authorities.

"The sale of Husqvarna Motorcycles by MV Agusta and its acquisition by BMW will significantly benefit both parties," said Lawrence Ferracci, Director of Operations for Cagiva USA, Inc., the exclusive North American distributor for Husqvarna, MV Agusta, and Cagiva motorcycles. "Most importantly, MV Agusta is strengthened by its ability to focus on its award-winning, high-end, on-road products, while BMW gains quick entry and excellent growth opportunities in the performance off-road sector with a strong, competitive, historic brand."

Ferracci also noted that "MV Agusta dealers will benefit from this focus with the MV factory commitment to expand its product development and lines, while Husqvarna dealers will gain the support structure of a global enterprise with resources to ensure Husqvarna motorcycles exponential growth. The transaction is a win-win situation for all parties."

Cagiva USA, Inc. will continue all sales, marketing, administration and logistical support for both brands for the foreseeable future. The release of the significantly updated Husqvarna 2008 model year products remains uninterrupted.




More, from a press release issued by MV Agusta:

MV AGUSTA TARGET TO EXPAND ITS BUSINESS THROUGH THE SALE OF THE HUSQVARNA MOTORCYCLES BRAND

BMW Motorrad will acquire the reknowned off-road motorcycle company Husqvarna Motorcycles. The President of MV Agusta Group, Claudio Castiglioni, and Dr. Herbert Diess, General Director of BMW Motorrad, signed the contract on 07.19.2007 in Varese (Italy).

The contractual agreement will come into full effect upon final approval of the EU cartel authorities. Both parties agreed that the purchase price is to remain confidential. For the Italian motorcycle Group, the sale of Husqvarna Motorcycles is a strategical step to concentrate all of its resources in the development of MV Agusta brand, icon of style and performance and Cagiva, historical brand in the low engine capacity segment.

Upon the signing of the agreement, the President Claudio Castiglioni stated: "This transaction has been carried out in order to expand MV Agusta and Cagiva presence in the international markets having more financial resources for new models development, thanks also to the support of Banca Intesa Sanpaolo."

Claudio Castiglioni added: "Husqvarna is steeped in tradition and one of the most famous motorcycle companies in the world with numerous racing victories including European and World titles, and under the directions of BMW Motorrad it will continue to express its full potential."

BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, will remain in place at its present location in the region of Varese in northern Italy. The transaction, from MV Agusta side, has been assisted by the global advisors Progman Group and Borghesi Colombo & Associates.




More, from a press release issued by BMW:

BMW MOTORRAD ACQUIRES HUSQVARNA MOTORCYCLES

Munich. BMW will acquire the renowned motorcycle company Husqvarna Motorcycles. Dr. Herbert Diess, General Director of BMW Motorrad, and the Italian industrialist Claudio Castiglioni signed a contract on 19.07.2007 in Italy. The contractual agreement will come into full effect upon final approval of the EU cartel authorities. Both parties agreed that the purchase price was to remain confidential.
For BMW Motorrad the acquisition of Husqvarna Motorcycles is a logical step in enhancing the company's activities in the field of light, sporty motorcycles, which has recently been reinforced with the new models of the BMW G 650 X series. Commenting on BMW's decision to acquire Husqvarna Motorcycles, Diess, General Director of BMW Motorrad, stated: "With the Husqvana models targeted at the sporty competition, we will be able to extend the BMW Motorrad range to include younger groups of customers as well as the entire off-road and supermoto sector much more quickly and effectively than with our core brand alone. This transaction also provides us with direct access to a worldwide sales network in the off-road segment."

BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise. All development, sales and production activities, as well as the current workforce, will remain in place at its present location in the region of Varese in northern Italy.

Just as BMW Motorrad, Husqvarna Motorcycles is steeped in tradition and one of the most renowned motorcycle companies in the world. Motorcycles were initially produced in Sweden from 1903 and in Italy from 1986. Today the company is one of the leading suppliers of sporty off-road motorcycles. In the course of its history, Husqvarna Motorcycles has achieved numerous international racing victories including European and World Championship titles.

BMW Motorrad produced and sold over 100,000 motorcycles for the first time (production: 103,759 units, delivery 100,064 units) in 2006. The production program includes only large-volume motorcycles over 500 cc. BMW Motorrad is the largest European manufacturer in this segment. In 2006, BMW Motorrad achieved sales of 1,265 million euros, with pre-tax profits of 66 million euros. BMW Motorrad employed an average of 2,816 staff worldwide in 2006.

Husqvarna Motorcycles is part of the Italian company MV Agusta S.p.A. and produced some 12,000 motorcycles in the capacity range of 125 to 610 cc in 2006. The focus of the company's model program is on sporty off-road motorcycles which are equipped solely with single cylinder engines. Husqvarna Motorcycles employed a workforce of approximately 240 in Italy in 2006.