Mahindra sells controlling stake in Peugeot Motocycles
Indian conglomerate Mahindra & Mahindra Ltd. (M&M) has sold a 50% equity share and a controlling 80% stake in its Peugeot Motocycles subsidiary to private equity investor Mutares SE & Co. KGaA - a Germany-based holding company.
Mutares' usual business model is to "acquire medium-sized companies in turnaround situations in order to sell them off again if restructuring succeeds".
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| "Representing the final part of a two-stage transformation, three years after the return of the 'Peugeot Motocycles' name, the new logo marks a new stage in the development of the brand. It is also a clear sign of ambition: the Peugeot brand is now ready to conquer new markets and accelerate the growth of its international business". |
M&M remains a co-shareholder "to support new product launches and the strong growth expected in the coming years". As of 10 November 2022 (during EICMA!), Mutares had submitted an irrevocable binding offer with the transaction expected to close in the first quarter of 2023 after union consultations and antitrust approval.
Headquartered in Mandeure, France (near the Swiss border), Peugeot Motocycles generates revenues of approximately € 140m, manufacturing two and three-wheeler scooters for "distribution through 3,000 subsidiaries, importers and dealers in France and internationally, across three continents".
Rajesh Jejurikar, Executive Director, Auto & Farm Sectors at M&M, said: "We are delighted to welcome Mutares to Peugeot Motocycles. Our efforts are directed towards sustaining this French legacy brand that has been delighting customers for 124 years. With an established track record of transforming companies across Europe, coupled with its expertise in the automotive business, Mutares is an ideal partner to strengthen and grow the brand with continuing support from M&M."
Johannes Laumann, CIO of Mutares, stated: "This is Mutares' thirteenth acquisition in 2022. Peugeot Motocycles is an internationally recognised brand built on a rich history as the world's oldest manufacturer of motorised two-wheelers. We are very proud to be associated with the brand. Based on our vast experience in the industry and a strong operational team, I strongly believe that we will be able to leverage the true potential of the company alongside our partner M&M."
Peugeot Motocycles, which recently updated its corporate identity with a new logo and style palette, has its own manufacturing facility in Mandeure, a joint venture with JNQQ (Jinan Qingqi Motorcycle Co., Ltd.) in China, as well as manufacturing partnerships with several large Asian players including Peugeot car distributor Truong Hai Auto Corporation (THACO) of Ho Chi Minh City in Vietnam.
THACO invested in the construction of an ultra-modern motorised two-wheeler assembly line at its factory in Chu Lai in 2020. It is the exclusive distributor for Peugeot Motocycles in the ten ASEAN countries (the Association of Southeast Asian Nations).
In additional corporate news at EICMA, M&M announced that Peugeot Motocycles is to manage the European sales of the new BSA Gold Star 650 from Mahindra "with immediate effect".
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| "The new Gold Star is a 652 cc water-cooled single-cylinder, making 45 hp at 6,000 rpm - to fit into the A2 licence category". |
BSA was founded in 1910 and at one stage was the world's largest manufacturer, and ultimately was bought by Triumph, seeing out its days as part of the infamous Meriden, Coventry (England) based Norton Villiers Triumph cooperative.
Mahindra bought the BSA brand in 2016 for around € 5m - bringing together various brand name and intellectual rights ownerships for the first time since the original BSA went out of production in the 1970s.
Mahindra has established a technical centre at Coventry to develop electric BSA models, but is initially assembling ICE comebacks, starting with the Gold Star 650 at Banbury, England, and in India.
The decision to effectively offload the financial heavy lifting that Peugeot Motocyles needs is thought to have been prompted by the long-term potential that M&M sees in focusing its capital resources primarily on the BSA brand.
