Mercedes willing to buy a majority stake in the Italian motorcycle manufacturer.
Italian motorcycle brand MV Agusta is $44.8 million in debt and sources say Mercedes-Benz could buy the company.
MV Agusta had a strong last year with a 30 percent sales growth, resulting in $111.8 million of revenue, but still the company is in trouble as it has serious financial problems. The firm is currently attempting to restructure its $44.8 million debt and the company’s creditors have 90 days to accept the proposal. One possible solution, if we are to believe Italian media, is an investment from Mercedes.
Two years ago, the German automaker acquired 25 percent from MV Agusta and the two sides are reportedly negotiating the terms of a new deal. Mercedes is said to be interested in a majority share, but MV Agusta president and 75 percent owner Giovanni Castiglioni is not willing to give up control over the company. Motorcycle.com reveals he may instead turn to other investors, such as Investindustrial, a former owner of Ducati.
MV Agusta claims a large number of backorders for 2016, which means some fresh gainings are expected soon. The Italians have invested only 15 percent of its annual revenue into research and development activities and have spent money in opening four showrooms in India earlier this year.