Vic, How is this for timing about our motorcycle fetish?
Monday March 8, 10:23 am Eastern Time
Company Press Release
Moto Guzzi Revved Up for Wall Street
Merger with North Atlantic Acquisition Corporation Completed
NEW YORK--(BUSINESS WIRE)--March 8, 1999--Mark Hauser, CEO of Trident Rowan Group, Inc. (NASDAQ:TRGI - news), today announced that Trident's subsidiary, Moto Guzzi Corporation, the renowned Italian pioneer of motorcycle design and manufacturing, completed its merger with North Atlantic Acquisition Corporation (NAAC) (NASDAQ:NACQA - news). The company will trade under the symbol GUZI. The deal provides an initial $8.9 million in cash equity and the possibility of up to $15 million more from the exercise of warrants. For Moto Guzzi this transaction represents a major step in the growth of the company.
The company plans to implement far-ranging programs to update production processes, to develop new products, and to expand sales. Moto Guzzi plans to invest additional capital on R&D, focusing on quality and design.
Founded over 77 years ago, Moto Guzzi is one of the world's oldest designers and manufacturers of motorcycles. ''The Moto Guzzi name means more than just motorcycles,'' said Moto Guzzi's Executive Chairman, Mark Hauser. ''Moto Guzzi is style. True to its Italian heritage, it represents a rich history and culture. We are returning Moto Guzzi to its rightful place as the cycle enthusiast's preferred choice by combining technological innovation and the tradition of our distinguished past,'' he added.
''We look forward to being part of the Moto Guzzi organization and look forward to being part of the growth of the corporation and brand,'' said David Mitchell, former Chairman of NAAC and now a director of Moto Guzzi. ''This merger will allow us to build on the company's history with solid expertise and financial backing.''
Already known for luxury and performance bikes in several categories, Moto Guzzi will focus more extensively on the heavyweight bike category. Heavyweights make up a $5 billion annual market worldwide and are the fastest growing segment in the market with global sales up approximately 20% over the past year. Current Moto Guzzi models include the California, Nevada Club, V10 Centauro, and 1100 Sport Corsa. New models available in 1999 include the California Stripper and the V11 Sport. Some projects on the longer-term horizon include a new generation for the California family and a new line of 750cc's with a new engine and chassis.
About Moto Guzzi
Moto Guzzi is one of the oldest, most storied motorcycle manufacturers in the world. Headquartered in Mandello del Lario, Italy, the company produces several models of heavyweight and high-performance motorcycles. With unit sales of about 5700 in 1998, Moto Guzzi sells its products through a network of over 750 wholly and partially owned importers and independent dealers worldwide. In addition to motorcycles for the general consumer, Moto Guzzi also manufactures models targeted at government agencies, national and local police forces and highway patrols.
The information in this press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements.
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Contact:
Company Contact:
Moto Guzzi Corporation
Mark Hauser, Executive Chairman
212/644-4441
or
Press/Investor Relations:
Ruder Finn
Hillary Kessler
212/583-2745
Friday March 12, 5:38 pm Eastern Time
INTERVIEW - Moto Guzzi tries to revive biker image
By Amy Collins
NEW YORK, March 12 (Reuters) - Italian luxury motorcycle maker Moto Guzzi Corp. (OTC BB:GUZIA - news) is mapping out a return to its heyday as the manufacturer of one of the world's most prestigious big touring bikes.
A week ago, the company finalized a partnership agreement with North Atlantic Acquisition Co. that provided it with $8.9 million in cash equity and $15 million in warrants.
With the new partnership and investment in technology, Moto Guzzi plans to take on the luxury-bike leaders, Harley-Davidson (NYSE:HDI - news) and BMW (quote from Yahoo! UK & Ireland: BMWG.F), by lowering its $11,000 average price for its new model, and targeting a younger, and possibly female, rider.
The company expects to see nearly 400 percent sales growth in four years, the company's top official said in an interview with Reuters on Thursday.
Moto Guzzi's current models are the California, Nevada Club, V10 Centauro and 1100 Sport Corsa. Two new bikes will roll out this year, the VII Sport, and another as-yet-unnamed bike dubbed the California ''naked sport bike.''
''The U.S. market is ripe. Harley has dominated the market for so long and they make a nice bike, but people want a change,'' said Moto Guzzi Executive Chairman Mark Hauser.
The motorcycle industry has seen 8 percent to 10 percent growth for the past seven years, and the biggest motorcycles, the heavy bike market, has seen growth of 18 percent to 23 percent during that time.
Heavyweight bikes make up a $5 billion annual market worldwide.
Founded after World War One by friends from an Italian Air Force unit, Moto Guzzi was a dominant luxury bike maker until the 1970s. It was the bike of choice by police officers around the world and dominated international racing events.
The company hit the skids more than 20 years ago when its parent company focused its energies on its sleek Maserati car line. U.S.-based Harley-Davidson Inc. and Germany's BMW AG have dominated the luxury market since then.
Moto Guzzi hopes the sheer prevalence of the competitors' bikes will be a selling point for its bike rich with Italian styling and heritage.
''Motorcycle riders tend to be individualists,'' Hauser said.
With so many Harleys and BMWs on the road, the high-end rider might be looking for something distinguishing.
Moto Guzzi makes 6,000 bikes a year and this year is planning for 7,000, which would let it break even on a net basis, Hauser said. Within four years, the company plans to make 20,000 to 25,000 bikes annually.
In its prime, the company's Italian plant had a capacity to build 50,000 bikes a year.
''We bought the company two years ago and we're looking to rebuild it,'' said Hauser, who is also the chief executive officer of New York-based Trident Rowan Group Inc. (Nasdaq:TRGI - news), which in addition to Moto Guzzi, makes metal furniture and steel tubing for vehicles.
Moto Guzzi had been a subsidiary of Trident, but on March 5, started trading under its own Bulletin Board symbol after North Atlantic Acquisition Corp. bought into the company. Moto Guzzi has applied to be traded on Nasdaq. On Friday, it closed 31 cents higher at $8.50 on the Bulletin Board, and has a 52-week high of 12-14 and 52-week low of 8.
Hauser, who admits he did not know much about motorcycles before he bought the company, said he now spends one week every month at the factory.
And does he ride? ''Now I do,'' he said.
The management and engineering teams were replaced at the company's sole manufacturing plant in Mandello del Lario, about an hour north of Milan. Between $6 million and $7 million was spent on new technology on the plant, with further costs required in about two years when production reaches 10,000 to 12,000 annually.
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