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International

30/09/2019

KTM Industries has acquired a majority stake in struggling Spanish off-road motorcycle brand GasGas and its associate e-bike brand Torrot.

In a fairly terse if superlative-laden statement, the Austrian company said it would be leading “an industrial cooperation” with GasGas and Torrot after “successfully concluded negotiations” with owner Black Toro Capital. Details of the takeover were sparse but other sources indicated KTM supremo Stefan Pierer had bought a 60% shareholding for an undisclosed sum. Black Toro has apparently retained a minority interest. This transaction will, of course, be subject to regulatory approval by Spanish and EU competition authorities.

A private equity firm specialising in the rescue of distressed small and medium-sized enterprises in Spain, Black Toro Capital had previously united these two niche brands in April 2017, after they experienced insolvency issues.

KTM Industries — soon to be remonikered as Pierer Mobility — went on to say that “both partners see this as a starting point for a bright future” and “new models” will be developed to join the GasGas trials and enduro range. General supposition is some of these will involve electric power and conventional off-roaders will benefit from extensive KTM and WP parts-bin largesse.

GasGas and Torrot products will continue to be made at their Girona factory in Spain. But once the deal is completed, they will be distributed alongside KTM and Husqvarna motorcycles, and e-bikes, through KTM Industries' global sales network.