Harley-Davidson LiveWire to Go Public via SPAC

Harley-Davidson to Publicly List LiveWire Electric Motorcycle Division

Harley-Davidson is preparing to make its electric motorcycle division, LiveWire, a publicly traded entity. This will be achieved through a merger with a special purpose acquisition company (SPAC).

The SPAC, known as AEA-Bridges Impact Corp (ABIC), is backed by executives from AEA Investors and Bridges Fund Management. This strategic move is designed to provide LiveWire with access to public market funding while allowing Harley-Davidson to retain significant ownership.

Details of the Agreement

The agreement incorporates Kymco, a prominent Taiwanese motorcycle and sport vehicle manufacturer, as a crucial partner in this venture. Completion of the deal is anticipated during the latter half of 2022.

A total of $600 million will finance the transaction. This includes $400 million held in trust by ABIC, a $100 million investment from Harley-Davidson, and an additional $100 million contribution from Kymco.

Ownership Structure

Following the merger, Harley-Davidson will maintain approximately 74% ownership of the combined company. Shareholders of the SPAC will hold a 17% stake.

The remaining 4% will be divided between the SPAC founders and Kymco. The enterprise value of the newly formed company is projected to be around $1.77 billion, with a post-money equity value of approximately $2.31 billion upon closing.

Leadership and Future Plans

Harley-Davidson will exert substantial influence over LiveWire due to its significant ownership position. Jochen Zeitz, currently the chairman, President, and CEO of Harley-Davidson, will assume the role of chairman for the new company.

He is also slated to serve as acting CEO of LiveWire for a period of up to two years after the transaction is finalized. Ryan Morrissey will be appointed as the president of LiveWire.

The capital raised will be allocated to bolster LiveWire’s market entry strategy, fund the development of innovative products, and enhance its global manufacturing and distribution network.

Expanding the Brand

The newly established LiveWire company will also encompass STACYC, the manufacturer of all-electric balance bikes designed for children. Kymco will contribute to this expansion by providing manufacturing capabilities.

Specifically, Kymco will facilitate market penetration in key global regions and within the light motorcycle and scooter segments through cost-effective manufacturing processes.

Public Listing and Market Position

Once the transaction is completed, LiveWire will become the first publicly traded electric motorcycle company in the United States. It will be listed on the New York Stock Exchange (NYSE) under the ticker symbol LVW.