A Harley-Davidson LiveWire electrical bike.
Photograph:
shawn thew/EPA/Shutterstock
Harley-Davidson Inc.’s
HOG 13.31%
electric-motorcycle division will develop into a separate publicly traded firm through a blank-check merger, a transfer the corporate mentioned would assist speed up product improvement and manufacturing.
The deal will mix LiveWire, Harley-Davidson’s electric-vehicle arm, with a special-purpose acquisition firm referred to as
AEA-Bridges Affect Corp.
IMPX 3.05%
, making LiveWire publicly traded. The settlement’s phrases give LiveWire a professional forma enterprise valuation of about $1.77 billion, the businesses mentioned.
On the deal’s closing, anticipated within the first half of subsequent yr, LiveWire shares will commerce on the New York Inventory Alternate below ticker image LVW. Harley-Davidson will proceed to personal about 74% of the brand new firm, whereas the SPAC’s shareholders will personal about 17%. The remainder of LiveWire might be owned by the SPAC’s founders and by Kymco, a Taiwanese powersports firm that’s investing $100 million within the deal.
LiveWire is anticipating web proceeds of about $545 million from the transaction, Harley-Davidson mentioned. It plans to make use of the proceeds to spend money on product improvement and develop its manufacturing and distribution talents.
Harley-Davidson Chairman and Chief Government Jochen Zeitz can even function LiveWire’s chairman, and might be its appearing CEO for as much as two years because it searches for a everlasting chief.
Write to Matt Grossman at matt.grossman@wsj.com
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