Harley-Davidson’s electric motorcycle business to become a publicly traded company
Harley-Davidson’s Electric Motorcycle Company LiveWire Becomes a Public Company
Harley-Davidson Inc. on Monday announced that its LiveWire electric motorcycle business would go public in a deal – valued at nearly $ 1.8 billion – with a London-based acquisitions company.
LiveWire will be listed on the New York Stock Exchange under the symbol LVW. The transaction is expected to close in the first half of 2022, Harley said in a statement.
Harley-Davidson will retain an approximate 74% interest in LiveWire. Shareholders of partner AEA-Bridges Impact Corp. will hold around 17%.
Jochen Zeitz, Harley’s, President, President and CEO, will serve as interim CEO of the new company for a period of up to two years. Ryan Morrissey, whose title is director of electric vehicles at Harley, will be the president of the new company.
â€œToday’s announcement is a historic milestone with LiveWire on track to become the first publicly traded EV motorcycle company in the United States,â€ Zeitz said in a statement.
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â€œThis transaction will give LiveWire the freedom to fund new product development and accelerate its time-to-market model,â€ said Zeitz.
AEA-Bridges Impact Corp. is a specialist acquisition company formed by private equity firm AEA Investors and Bridges Fund Management. Special Purpose Acquisition Companies, or SPACs, are used as a shortcut to going public, bypassing the long and expensive process of a traditional initial public offering.
One of the goals of AEA-Bridges Impact Corp. is environmentally friendly projects. Another partner in the Livewire agreement is KYMCO, a Taiwanese manufacturer of motorcycles, scooters and utility vehicles.
â€œWe are at the confluence of two fundamental changes impacting the industry: vehicle electrification and sustainability. LiveWire is well positioned to become the premier brand for sustainable electric motorcycles and redefine the industry by leveraging the manufacturing and distribution expertise of Harley-Davidson and KYMCO â€John Garcia, President of AEA-Bridges Impact Corp. , said in a statement.
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LiveWire is Harley’s first electric motorcycle, launched in 2019, as part of an effort to attract younger customers. The fast and powerful street bike requires no clutch or gear change, simplifying the operation for new riders. And the bike can pick up energy from braking and add a charge to the battery, which is useful when riding in traffic jams.
The newly formed company will also include STACYC, a brand of children’s e-bikes.
The transaction, which has been approved by the boards of directors of Harley-Davidson and AEA-Bridges Impact Corp., will be funded by $ 400 million from AEA, $ 100 million from Harley-Davidson and $ 100 million from KYMCO.
Harley shares were higher after Monday’s announcement and ended the day at $ 38.54, up 4.7%
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This article originally appeared on Milwaukee Journal Sentinel: Harley-Davidson’s LiveWire to Become a Public Company