Piaggio Finalizes Aprilia Take-Over

PONTEDERA, Italy (January 4) - Just before the end of 2004 Piaggio & C. S.p.A. finalized the acquisition of 100% of the shares of the Aprilia Group. Piaggio, which is owned by private equity firm Immsi (main shareholder: Roberto Colaninno) paid € 455 million for Aprilia. The shareholders of Aprilia receive € 20 million for their shares while Piaggio also takes over debts of Aprilia for a total of € 108 million. Piaggio is also issuing new shares for a total of € 50 million. Piaggio was, apart from being their main engine supplier, also one of the main creditors of Aprilia. Aprilia’s debts at Piaggio stood at over € 110 million. Already on 13th August, 2004 Piaggio announced a preliminary agreement about the take-over. Authorization from the Italian antirust authorities and agreements on bank loans slowed the process down as well as the fact that Ducati was still in the race for the take-over of Aprilia. With the merger between Piaggio and Aprilia the most important PTW group in Europe and the fourth largest worldwide is established. Piaggio manufactured 355,000 PTWs and 71,700 three- and four-wheelers in 2003. After the merge with Aprilia the volume would be over 600,000 units with 8 manufacturing facilities, a working force of over 6,000 people and annual revenues up to € 1.5 billion. The new group will be supplying a full product range of PTWs and can count on a market share of 24% in Europe and 35% in Italy. Piaggio’s goal is to become the largest and most important manufacturer in Europe with a yearly output of about 1 million units that covers all segments of the market for PTWs. With that Piaggio wants to reach the same level as its strong Asian competitors Honda and Yamaha. (JO)