MILWAUKEE (AP) -- Harley-Davidson Inc. said Friday it agreed to buy Italian motorcycle maker MV Agusta Group for about $109 million to boost its presence in Europe.
The company said the purchase prices includes existing bank debt for about $70 million.
Under the agreement, Harley-Davidson will also pay Claudio Castiglioni additional payments in 2016 if certain financial targets are met. MV Agusta is privately held, with the Castiglioni family owning 95 percent of the shares. Claudio Castiglioni will continue to serve as chairman.
MV Agusta makes a line of premium sport motorcycles under its name brand and a line of lightweight motorcycles under the Cagiva brand.
Harley-Davidson said it will operate the company from its headquarters in Varase, Italy. The company said it will appoint a new managing director once the deal closes.
The acquisition is expected to close in several weeks.
Harley-Davidson said it will fund the deal through euro-denominated debt.