Black Ocean Invests in MV Agusta
Back in March, MV Agusta announced a restructuring plan that focused on debt consolidation. This was due to MV Agusta being roughly $45 million in debt, most of that debt absorbed by suppliers.
The press release reported that MV Agusta will be in a battle for the coming months, and except for a few RC (Reparto Corse) editions of motorcycles, including the F4 RC, Dragster RC, and Turismo Veloce RC, all has been hush from the Varese company. It’s been known that struggles exist due to CEO Giovanni Castiglioni not wanting to renounce all control of the brand his father Claudio helped build, but things may have shifted.
News surfaced this week when MV Agusta Holding announced that it had signed a deal with the investment division of Black Ocean, a technology company that is split into three divisions: Mobile, Media and Investments. But no details of the capital investment were reported.
MV Agusta did report that the closing of the Black Ocean transaction is expected to coincide with the implementation of MV Agusta’s restructuring plan, which also remains unreported in regards to specific details.
Black Ocean, part of the holding group Ocean Group that invests heavily in the USA, Europe and Russia, was founded by entrepreneurs Oliver Ripley and Timur Sardarov, and has offices in New York, London and Luxemborg. Black Ocean has invested and built a diverse group of businesses spanning technology investments, private aviation, real estate, agriculture, and now motorcycles.
The goal of the Black Ocean investment is likely to get MV Agusta in full production mode again. Many suppliers have ceased providing components to MVA due to the Italian motorcycle company’s current debt situation. If Black Ocean can help settle some of that debt, MV Agusta can resume full production of new motorcycles, and get back to good standings within the market.
This capital investment may also help MV Agusta with its current situation with AMG, which holds 25 percent of MV Agusta shares. For MVA to buy back that 25 percent, a clause in the merger contract says that MV Agusta must be debt free.
Speaking of the Black Ocean investment, Oliver Ripley, Ceo of Black Ocean, says: “We are very pleased to become part of such an iconic Italian company and excited by the opportunity to build this into a truly international brand and industry leader.”
Giovanni Castiglioni, Ceo of MV Agusta, also responded: “I am very pleased that we have reached this agreement with Black Ocean. Beyond the strengthening of our capital, which is important for the future growth of MV Agusta, I strongly believe that Mr. Sardarov, Mr. Ripley and their global team will be able to contribute with their entrepreneurial and managerial skills in the consolidation of MV Agusta as a key player in the super premium motorcycle market.”
Will this be investor that MV Agusta needs for a true turnaround? Stay clicked to Ultimate Motorcycling as details unfold.