KTM’s struggles are out there for everyone to see. The Austrian bikemaker has been in a tough financial crisis for a while and we all knew strict measures had to follow. Well, here we are.
The Pierer Mobility Group – which owns KTM, GasGas, Husqvarna and other moto brands – was in the midst of its 90-day "self-administration" procedure when it declared that it would be selling its 50.1% controlling stake in MV Agusta to the Sardarov family for "an enterprise value in the mid-double-digit millions" following its recent restructuring proceedings.
This portion of the company was sold to Art of Mobility S.A., a minority stakeholder owned by the Sardarov family. Before raising its holding to a controlling position in MV in March of last year, KTM had first purchased a 25.1% investment in the company back in 2022. It is anticipated that the deal will be completed by the end of 2025's second quarter.
As anticipated, MV Agusta blamed the KTM financial crisis for the decision to sever ties. However, the marque anticipates carrying on as usual following a very "successful year" in 2024.
"After a successful year for MV Agusta, the financial situation recently unfolded at Pierer Mobility AG could have significantly impacted the Schiranna brand’s operations," read a statement from MV Agusta. "This strategic agreement ensures that MV Agusta remains completely uninvolved in KTM’s ongoing financial restructuring process, allowing the company to continue its positive growth path."
The business will not be a part of KTM's current reorganization, which already received assistance from partners CFMoto and Bajaj Auto.
Weirdly enough, this is not MV Agusta’s first tryst with a resale/repurchase deal. A similar deal occurred in 2010 when Harley-Davidson bought the controlling stake in the brand from the Castiglioni family in 2008 and then sold it back to the family at a significant loss.
Known for being a motorbike aficionado himself, Timur Sardarov initially got involved with MV Agusta in 2016 through ComSar Invest, his investment company that is a component of the Russian Sardarov family's corporate holdings. This was right after MV Agusta split from Mercedes-AMG, which briefly owned a minority position in the motorcycle company.
Sardarov's influence increased between 2017 and 2018 as a result of calculated investments that aided in the company's comeback and established him as a crucial decision-maker. He was formally appointed CEO in 2019, which signaled the change in leadership from the Castiglioni family to the Sardarov family under its holding company, the Art of Mobility S.A.
Drawing your attention back to KTM, the "double-digit millions" that the Austrian bikemaker would make from the transaction is a pittance when you consider that it currently owes its creditors almost US$3 billion. The company is stuck with a big inventory of unsold bikes that it needs to sell fast.
MV Agusta, on the other hand, achieved its 2024 sales target of 4,000 motorcycles, representing an approximate 116% increase over 2023. The Italian company is far more boutique-focused and sells more expensive bikes.
In 2025, MV Agusta intends to expand from 219 to 270 dealerships, even in the absence of the backing of a bigger international business like Pierer. In addition to selling more motorcycles than ever before, MV set a record in 2024 by selling more parts as well.
The company was able to expand its after-sales division to accommodate motorcycles up to seven model years old with Pierer's assistance. It's encouraging to see a well-known Italian superbike brand survive, and MV made a wise investment by partnering with KTM.
As for KTM, only time will tell how it’ll go from here.
Source: MV Agusta
