Harley-Davidson, one of the most iconic motorcycle brands in the world, and AEA-Bridges Impact announced that they have entered into a definitive business combination agreement under which ABIC will combine with LiveWire, its electric motorcycle division, to create a new publicly-traded company.
AEA-Bridges Impact is a special purpose acquisition company with a dedicated sustainability focus that is sponsored by executives of AEA Investors and Bridges Fund Management. The common stock is expected to be listed on the New York Stock Exchange under the symbol ‘LVW’.
LiveWire plans to become the industry-leading, all-electric motorcycle company, with a focus on the urban market and beyond. As a strong and desirable brand with growing global recognition, LiveWire plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling.
LiveWire will capitalise on a decade of learnings in the EV sector from Harley-Davidson and the iconic heritage of the most desirable motorcycle brand in the world.
Jochen Zeitz, Chairman, President and CEO of Harley-Davidson, said: “This announcement is a historic milestone with LiveWire set to become the first publicly traded EV motorcycle company in the US. By building on Harley-Davidson’s 118-year lineage, LiveWire’s mission is to be the most desirable electric motorcycle brand in the world, leading the electrification of the sport.
“This transaction will give LiveWire the freedom to fund new product development and accelerate its go-to-market model. LiveWire will be able to operate as an agile and innovative public company while benefitting from the at-scale manufacturing and distribution capabilities of its strategic partners, Harley-Davidson and KYMCO.”
John Garcia, Chairman and Co-CEO of AEA-Bridges Impact Corp added: “We are at the confluence of two seminal shifts impacting the industry – vehicle electrification and sustainability. LiveWire is well-positioned to become the premier sustainable electric motorcycle brand and redefine the industry by leveraging the manufacturing and distribution expertise of Harley-Davidson and KYMCO.
“We’re excited to partner with Harley-Davidson and the LiveWire team to help define the future of electric motorcycles as the industry continues its rapid transformation.”
Building on a 10-year journey within Harley-Davidson and established as a separate division in 2019, LiveWire will develop the technology of the future and will invest in the capabilities needed to lead the transformation of motorcycling.
As a pure-play EV brand with first-mover advantage, LiveWire has brand presence in North America and Europe, with planned expansion into additional markets including Asia.
The transaction will be financed by ABIC’s $400 million cash held in trust, a $100 million investment from Harley-Davidson, and a $100 million investment from KYMCO, through a PIPE (private investment in public equity).
The combined company is expected to have an enterprise value of approximately $1.77 billion and post-money equity value of approximately $2.31 billion at closing.
Zeitz will be Chairman and serve as Acting CEO of LiveWire for up to two years following completion of the transaction. Ryan Morrissey will serve as President.
The net cash proceeds will be used to fund LiveWire’s strategic plan to accelerate its go-to-market strategy, invest in new product development, and enhance its global manufacturing and distribution capabilities.
Upon closing of the transaction, Harley-Davidson will retain an equity interest in the company of approximately 74%, ABIC’s shareholders will own approximately 17%, and ABIC’s founders and KYMCO will own approximately 4% each.
