MV Agusta Reports It’s Making Some Money

After last year’s reports about MV Agusta having serious financial problems again, the Italian bike maker now officially claims it is back in positive cash flow generation, which means that its gorgeous models will be around for a while more.
MV Agusta Brutale 800 rr 1 photo
Photo: MV Agusta
Following the announcement of the agreement on the capital increase of MV Agusta, signed on 17th November between MV Agusta Holding and the investment group Black Ocean, controlled by the Sardarov family and by British financier, Oliver Ripley, the Italian motorcycle manufacturer adds another important element for the consolidation of its plan.

On 15th March 2017, MV Agusta received from the Court of Varese the green light to the industrial plan put forward, aimed at the strategic and financial reshaping of the company, leader in super premium motorcycle production.

“In the last 12 months, the implemented measures have brought MV Agusta back in positive cash flow generation, allowing the company to accomplish the targets set in its plan and to consistently support product development and consolidation of our main markets,” Giovanni Castiglioni stated. “MV Agusta has a completely new product line, born from 5 years of heavy investments that, along with our iconic brand, represent the key elements to support our growth and our clients demand.”

For those not aware of MV Agusta’s past, and why this is such good news, let me explain a bit here. In 1971, the company lost its guiding force, co-founder Count Domenico Agusta. The brand won its last Grand Prix in 1976, and by the end of the season, it was out of the racing scene.

With a precarious economy, MV Agusta was forced to seek for a new financial partner, and soon, a solution came from public financing giant EFIM, which demanded the company exits the motorcycle industry to straighten its finances. But, it continued to sell bikes until 1980, when the last two-wheeler made found an owner.

Cagiva bought the company in 1991, and in 1997 it introduced the first new MV Agusta motorcycle, the F4. More models followed and in 1999, the group got reorganized for strategic purposes, with MV Agusta becoming the main division, shielding Cagiva and Husqvarna.

Still, the Italian company went in heavy debt and got acquired by Malaysian car maker Proton, who sold it to GEVI SpA in 2005. In July, MV Agusta sold Husqvarna to BMW so it can concentrate all resources on its models and Cagiva.

In 2008, Harley-Davidson showed its curiosity for the company, but a year later it divested its interest and sold MV Agusta to Claudio Castiglioni and his wholly owned holding company MV Agusta Motor Holding S.r.l.

Sales then started to grow by 50 percent in the first three months of 2010, and in 2014, Mercedes-AMG announced a long-term partnership with the brand and the acquisition of 25% Then, towards the end of March 2016, the bike maker was reportedly having problems again, including a debt1 of around €40 million.
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