Arctic Cat, Piaggio Enter Partnership
March 6, 2006
Filed under Uncategorized
Arctic Cat Inc. and Piaggio Group announced the execution of a letter of intent designed to expand and strengthen their respective distribution in Europe and North America, and potentially lead to other areas of future collaboration, such as product development and manufacturing.
Arctic Cat is a manufacturer of ATVs and snowmobiles sold under the Arctic Cat brand name. Piaggio is a manufacturer of two-wheel motor vehicles sold under the Aprilia, Moto Guzzi, Derbi, Piaggio, Vespa and Gilera brand names. Officials of both companies say the two entities have complementary assets and capabilities.
Initially, Arctic Cat and Piaggio will cooperate on product distribution, with both sharing access to their respective dealers in North America and in Europe. Arctic Cat will be able to sell its ATV products through selected Piaggio Group dealers in Europe, and the Piaggio Group will sell its motorcycles and scooters through selected Arctic Cat North American dealers.
“The Piaggio Group is currently pursuing a number of initiatives to further strengthen its global presence, particularly in North America,” said Piaggio Group's CEO Rocco Sabelli.
“We're excited about the potential of this strategic partnership to extend our international distribution capabilities and open new channels for growth,” said Christopher Twomey, chairman and chief executive officer of Arctic Cat. “We anticipate that this agreement will enhance the competitive positions of both companies internationally, providing tangible benefits to our customers, dealers and shareholders.”
The two companies are presenting the new initiative to their respective dealers gathered in Yellowstone, Mont., for Arctic Cat, and Montecarlo, France, for the Piaggio Group.