Harley-Davidson's EV division LiveWire to go public

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In a recent press release, Harley-Davidson announced that its EV motorcycle division, LiveWire, will go public as it merges with a special purpose acquisitions company, AEA-Bridges Impact Corp. (ABIC). Together, Harley-Davidson and ABIC have entered into a definitive business combination agreement under which ABIC will combine with LiveWire to create a new publicly traded company.

KEY TAKEAWAYS

  • What is LiveWire?

    LiveWire is Harley-Davidson's EV motorcycle division.
  • What company did Harley-Davidson merge with to make LiveWire public?

    Harley-Davidson merged with AEA-Bridges Impact Corp. (ABIC), a special purpose acquisitions company.
  • Who else will be a part of this business agreement?

    Harley-Davidson and ABIC will be joined by Kymco.
  • How much will Harley-Davidson make out of this transaction?

    Harley-Davidson says that the estimated net proceeds will be US$545 million.
  • Its common stock is expected to be listed on the New York Stock Exchange under the symbol “LVW.”

    In addition, Harley-Davidson says that the transaction will net a proceed of US$545 million and a pro forma enterprise value of approximately US$1.77 billion. The funds will be used by LiveWire to accelerate its strategic plan for its go-to-market model, invest in new product development, and enhance global manufacturing and distribution capabilities.

    Harley-Davidson and ABIC will be joined by Kymco, who will lend them its engineering expertise, manufacturing footprint, distribution, supply chain infrastructure, and global logistics capabilities.

    kymco-x-livewire

    “Today's 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,” commented Harley-Davidson President and CEO Jochen Zeitz.

    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 of LiveWire. LiveWire's Board of Directors will include independent directors in addition to representation from Harley-Davidson and ABIC.

    AEA-Bridges Impact Corp Chairman and Co-CEO John Garcia 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.”

    Upon the closing of the transaction, Harley-Davidson will retain an equity interest in LiveWire of approximately 74 percent, ABIC's shareholders will own approximately 17 percent, and ABIC's founders and Kymco will own approximately four percent each.

    The transaction, which has been approved by the boards of directors of both Harley-Davidson and ABIC, is expected to close in the first half of 2022, and is subject to the approval of ABIC shareholders and other customary closing conditions.

    LiveWire plans to redefine motorcycling as the industry-leading, all-electric motorcycle company, with a focus on the urban market and beyond. LiveWire also plans to develop the technology of the future and to invest in the capabilities needed to lead the transformation of motorcycling with plans of adding an all-electric balance bike for kids dubbed “Stacyc.”

    livewire-one-2

    LiveWire now has presence in North America and Europe, and will into additional markets including Asia.

    The LiveWire One, its flagship EV motorcycle, is currently priced at US$21,999 with optional add-on packages costing US$1,299.95.

    Photos from Harley-Davidson, LiveWire, and Kymco

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