GasGas, a Spanish off-road brand, was having some financial issues for the last few months and needed help to survive. KTM came to the rescue and if the reports are to be believed, bought a 60% stake of the firm.
Speaking about this deal, managing partner of GasGas’ owner Black Toro Capital, Ramón Betolaza, said, “(This news) represents a major step forward in our project to consolidate GASGAS as a world leader of trial, it allows us to develop a new growth phase for GASGAS incorporating new models with cutting-edge technology with the best possible partner for the future of GASGAS.”
The terms of the deal haven’t been disclosed yet and the joint venture is still under the scrutiny of the European regulators. However, the following are some points of the deal that are expected to have been inked down.
Benefits of the deal
GasGas has a wide range of products including electric bikes. KTM would use GasGas’ tech of electric motorcycles to develop its own electric offerings and it would also have access to GasGas’ production facility in Spain.
The main benefit for GasGas from this deal would be the money, which it needed the most. Also, GasGas would use KTM’s tech to develop new trials and enduro bikes in the future. GasGas would also get access to KTM’s large distribution network.
Do you think just like Husqvarna, KTM would acquire GasGas too?