Harley-Davidson Shares Skyrocket Up To 20% Friday July 1st Amid Takeover Speculation.

h-dIs a Massive Buyout Coming? Shares of Harley-Davidson (HOG) were up 19.76% this Friday amid speculation of a potential takeover interest by private equity company KKR & Co. (Kohlberg Kravis Roberts & Co) Last time there was such speculation was in December 2015.

From January 1st until yesterday June 30, Harley stock (HOG) was down 30% due to very disappointing sales. Haley-Davidson has to replace its core clientele of aging baby boomers with youngsters and is under competitive pressure from newer market entrants, such as Polaris Industries owned Indian and Victory, and also from foreign manufacturers like Triumph & Ducati.

KKR is a private equity firm famous for having acquired companies like Eastman Kodak, RJR Nabisco, Toys “R” Us and many others. Harley’s debt-to-equity ratio is relatively low at 52%, giving a private equity firm enough room to add debt to complete a massive leverage buyout transaction. Today KKR & Co and Harley-Davidson refused to comment, both companies having a longstanding practice of not replying on market rumors and speculation. To follow…

40 Responses to “Harley-Davidson Shares Skyrocket Up To 20% Friday July 1st Amid Takeover Speculation.”


  1. 1 John H Jul 1st, 2016 at 2:50 pm

    KKR led to the downfall of many great American companies. They invented the leveraged buyout. Read the book “Merchants of Debt”

  2. 2 Sarah Vader Jul 1st, 2016 at 3:46 pm

    If Harley does get purchased they better keep their identity. I like them the way they are.

  3. 3 Ian Jul 1st, 2016 at 4:23 pm

    Not again!

    Being English and having ridden Harley’s for over 35 years – I get used to it as an institution in my life. There are very few examples in the world where Private Equity buy outs have added to the brand – we’ve all seen the film and read the book – and this should not be allowed to happen.

  4. 4 coffeebeans Jul 1st, 2016 at 4:53 pm

    Yawn.

    This is the exact, same rumor that floated around back in March.
    Smells like another ‘let’s float a rumor to bump our stocks’ rumor.
    Sort of like the “Is Harley buying out Arctic Cat?” rumor.

    Maybe it’ll happen, maybe it won’t.
    If it does…and that’s a big if…I don’t think that’s a good thing for HD. At all.
    KKR specializes in leveraged takeovers. Big ones.
    And they do NOT play well with others.

    There was actually a book written about them.
    It’s called “Barbarians At The Gate”

    If KKR gets them, expect to see Indian, Chinese and Mexican Harleys, cuz that’s where they’ll be built. .

  5. 5 Mike Greenwald Jul 1st, 2016 at 4:53 pm

    Seems that loyalty of customers and employees has been squandered in the same fashion that quality was squandered. Yay, $75.00 t-shirts.

  6. 6 zipper Jul 1st, 2016 at 5:13 pm

    Cyril, I have been reading your post almost every day for years. It gives me a few minutes to escape real world problems and think only about motorcycles. Publishing remarks such as JT’s snaps me right back to reality. What happened to Please avoid offensive,vulgar, or hateful language. I don’t need to read these kind of comments and I won’t. Cyril Huze Post is off my Bookmark’s Page. No need for anyone to reply. I done with CHP. ..Z

  7. 7 BobS Jul 1st, 2016 at 5:27 pm

    I second what Zipper said.
    Now with regard to leveraged buyout…Oy vey. This sounds to me like KKR spends a boat load aquiring H-D, then calls that boat load a loan that H-D has to pay back. After years of struggling to make the loan payments, which takes money out of R&D, marketing, etc. which cause further declines in H-D sales…KKR liquidates H-D assets netting themselves a handsome profit while killing off Harley. Not cool.

  8. 8 richards Jul 1st, 2016 at 6:42 pm

    jt….WTF?

    Zipper…Hopefully Cyril will block this idiot. It would be a time to lose a rational poster over a bigot. I hope you stay and enjoy this blog as usual.

  9. 9 richards Jul 1st, 2016 at 6:45 pm

    I also hope a buyout does not happen. Speaking from experience, it could be very bad for us Harley enthusiasts. Remember AMF???

  10. 10 HellInABucket Jul 1st, 2016 at 6:49 pm

    JT – thanks for that brain dead comment.

  11. 11 Woody's Jul 1st, 2016 at 7:19 pm

    Like Zipper and rest, said. There’s simply no room on your blog for such stupidity.

  12. 12 fuji Jul 1st, 2016 at 7:30 pm

    A lot of money was to be gained by this news whether it materializes or not and that includes upper management and share holders. Read between the lines of the company that you so endear.

  13. 13 Pat h Jul 1st, 2016 at 7:50 pm

    It’s just someone’s opinion bigoted or not right or wrong I would think most would have thicker skin, the politically correct world has turned to many into whiners

  14. 14 splattttttt Jul 1st, 2016 at 8:05 pm

    Love my Harley’s. But hate the MOCO! But I hate bigots even more!!!
    Back to the MOCO… They’re greedy!
    They treat their employee’s like crap.
    Their R&D is next to nill.
    These three basic business practices, when overlooked. Are the things that will hurt the most.

  15. 15 Dyno Jul 1st, 2016 at 8:30 pm

    it will happen or not, but it means that H-D is vulnerable.

  16. 16 Greg Danzig Jul 1st, 2016 at 8:31 pm

    An hostile takeover would be an interesting time…for the competition.

  17. 17 Paul Corso Jul 1st, 2016 at 8:31 pm

    Sooner or later Harley is cooked.

  18. 18 C. Brenze Jul 1st, 2016 at 8:34 pm

    If KKR takeover harley, expect massive layoffs. Then the company being sold back in 5 years for a huge profit for KKR

  19. 19 DRE Jul 1st, 2016 at 8:36 pm

    KKR will be as damaging for Harley as Trump would be for our country if he is elected President.

  20. 20 Terence Bohler Jul 1st, 2016 at 8:38 pm

    It’s rare that a rumor lasts a full day on Wall Street, especially just before a holiday. Somebody knows something…

  21. 21 Highrider Jul 1st, 2016 at 11:02 pm

    Couple of issues, back when the group of Harley employee execs bought the company, they comprised of actual family members ( ie Willy G) and the CEO was a rider and the spirit of the company and country was very different than today, Ronald Reagan was President and the Japanese motorcycles were in some cases better machines, the Evolution engine and a grand marketing scheme made Harley a very successful company, coming out with many new models the public liked and bought.

    That is not the case today, HD is still getting over the previous CEO’s revenue is everything style and Baggers have become the main motorcycle of choice with a large price tag. Marketing is non existent and the MOCO has turned their back on their long standing customers for quite sometime in favor of a PC customer who does not exist, but the older ones Do exist and their 40-50 year old sons want them now. There is a market

    Polaris’s machines are Not better than HDs, but perception maybe, due to poor HD marketing, ex holding new model years until Labor Day instead of Sturgis,,, Really that is a genius idea.

    I hope HD is not bought out, but maybe HD should hire some real advocates for them selves and get rid of the HOG Editor Manager types.

    Maybe even copy some of the competition only make it better

  22. 22 Charles Erickson Jul 2nd, 2016 at 8:54 am

    Yeah, I agree with Pat h. No, I don’t agree with the (now deleted) anti-Semitic post, but I would think that motorcycle people would be a little thicker-skinned. Anyway, I sure hope they don’t do a leveraged buyout. I think that, if they tried to rip off the company, a lot of people, including myself, wouldn’t stand for it. Something would have to give. Too many people have a history with Harley.

  23. 23 Hicap Jul 2nd, 2016 at 8:55 am

    Hate to say it High rider Polaris is building a better bike all except for the paint. Just look at all the problems and recalls since the launch of the Rushmore bikes.

  24. 24 Kansas Jul 2nd, 2016 at 9:10 am

    I rode a friends Indian and my expensive 2012 Harley is a 2 wheel farm implement in comparison. When it is new bike time I am finished just deciding between Harley models.

  25. 25 Art Welch Jul 2nd, 2016 at 11:12 am

    I wonder if this is why all these Harley Dealerships are selling their franchise.. maybe they are catching wind of something.

  26. 26 BobS Jul 2nd, 2016 at 1:36 pm

    I would just like to point out that calling out anti-Semitic or racist statements isn’t being PC or thin skinned, it’s called being a decent human being. As for Polaris, I switched to Victory several years ago from Harley because Vic made a better bike. Not better in every way, just better in the ways I care about. Harley’s come a long way towards catching up since then and it’d be a shame to see that progress stopped.

  27. 27 Badams Jul 2nd, 2016 at 7:18 pm

    Interesting observation today. Needed a simple non cosmetic part from the a new HD dealer, across the street is a Polaris / Indian dealer. Checked it out……Stark contrast. Harley showrooms look sadly dated. Even Bartel’s looks tired. I am an HD diehard and this rant is unrelated to the above however there is a thread of truth here. Harley has so many amazing options to shift its marketing and dealer experience. From what I know HD puts strict guidelines on the dealers look. In the land of unicorns and rainbows each dealer can infuse their own unique identity? Also HD needs to revamp their appeal line. FXRD is good stuff more of that? Man, HD has endless character. The recent sportster build off was a good start now don’t hold back …… blow minds, most don’t know just how rad HD is.

  28. 28 JohnnySpeed Jul 3rd, 2016 at 6:48 am

    BobS – Well said.

  29. 29 NotAFanOfArt Jul 3rd, 2016 at 2:18 pm

    Art- I thought Indian had a gag order on you. I’ve missed your entertaining comments.

  30. 30 David Jul 3rd, 2016 at 11:10 pm

    Full disclosure, I’ve been a private equity (PE) attorney for 18 years but before that (and still am) a Harley owner. I know KKR and the other PE firms. I’ve dealt with them all for many years. Private equity is about one thing and one thing only: making money for the PE firm (the Sponsor) and for the Shareholders. Might it be a good thing for HD? Maybe. Depends how they move around management to better serve THE CUSTOMER. But know this: when it comes to the Customer vs. the Shareholders/Sponsor, the latter will always win out.

    If it’s rumor to drive up the stock price, the SEC will have someone’s ass in a sling, so I doubt that. It does tell me HD is probably shopping for a suitor. Whether it will be the RIGHT suitor depends on who HD has advising them. KKR is often a name that comes up when anyone is looking for a potential PE acquisition so that may or may not be legit. So who knows how this will shake out. I’m not holding my breath that anything good will come of an LBO (leveraged buy-out). Unless HD is bleeding money then perhaps having them propped up and reorganized would be good for the customer. I said “perhaps”. I don’t hold out a lot of hope for post-LBO company doing what’s in the best interest of its customer base.

  31. 31 X HD Rider Jul 4th, 2016 at 11:37 am

    I think its time for Harley to redesign that bat wing fairing. Might be that’s why Vic is doing so good. That front fender should be buried in the scrap yard. The three wheeler is such a old servie car design its sad.
    Harley can’t change cause they’re scared everyone will run away. Vic and Indian are not better there just new and people are tired of that old look

  32. 32 Craig Jul 4th, 2016 at 3:33 pm

    Harley had a Fantastic run but I think they are going to be on the ropes soon if they don’t change their Business Model. Indian and Victory are far superior bike as far as reliability/power.

  33. 33 Roberto Jul 4th, 2016 at 3:52 pm

    They di a hell of a job with Eastman Kodak. Want some cheap real estate in Rochester,NY?

  34. 34 Not a Fan of NotafanofArt Jul 5th, 2016 at 7:53 am

    you made your own presumptuous Conclusions… idiot 🙂

  35. 35 boston jim Jul 5th, 2016 at 8:13 am

    I missed what JT posted, But, I believe in our Bill of Rights, especially our 1st two! I was conceived at the bottom of the street to Bunker Hill, in Charlestown, Mass. I grew up one town away from Lexington & Concord, I am a Patriot ! I was born on September 11, 1949, last month, I did my 48th Laconia ! Today, I live 40 miles from the Original Indian Factory. On the 3rd Sunday in July, Old Indians from across the USA, will arrive at the Indian Museum, for their Annual Pilgrimage to their Birthplace, I have gone many times, it’s amazing, I have a vendor spot again this year.

    I’ve been a fan of the New (Gilroy) Indian, since I did the Centennial Ride in 2001, Springfield, Ma. to Gilroy & back to Springfield, Ma., it was an Amazing month, on the road. To see the USA, from the seat of an Indian is quite Amazing ! I’m glad I did it, I was the only rider from New England. Today, I’m Legally Blind, my M/C days are over, I’ve had a 50 year run, I’m at Peace with myself. Still have 2 EVOs!
    We have a 1986 1st year Evo Sportster & a 1999 FXSTC, the last EVO Big Twin. That was also the 1st year of the Twin Cam motor, put together without too much thought, all sorts of extra moving parts! And, the 2000 Softails with 14 lbs of extra chains & weights ?

    H-D should sell out to S&S , THEY know how to build a balanced motor with Gear cams! EPA NOISE, that’s all Bullchit ! The X-Wedge motor is Amazing ! If the S&S truck visits your area, check-out their Gear Driven Cam Display. The 1999-2006 spring tensioner can’t be turned by hand, the 2007 & up Hydralic tensioners, can be turned, if your the ROCK, & a baby could spin the Gear Drive System, AMAZING !
    Have a Great & Safe Summer, Boston Jim, fatzusadotcom

  36. 36 hark Jul 6th, 2016 at 7:59 am

    HOG…Harley Owners Group once had a membership of around 1.2 million members. The organization numbers has dropped nearly in half…there are problems!

  37. 37 NotAFanofArt Jul 6th, 2016 at 10:58 am

    In Art’s world you’re an idiot for thinking. Typical libtard.

  38. 38 Blackmax Jul 6th, 2016 at 5:26 pm

    I missed whatever JT said but I’m glad it was removed
    There is enough crap floating around unfiltered on the Net
    that it does not need to be here on a motorcycle industry blog !
    I really hope it is not true as a leveraged buyout
    (especially from what we’ve heard from David [thank you] )….
    It would be the destruction of a great American company
    & there aren’t that many of them left !!
    Not to mention the end of the innovation that has gone on
    now that there is competition between American brands
    Now as “the regulars” know, I’m not a big fan of the Mo-Co
    but I do want them to survive for the number of my friends that live, breath & die H-D.
    We’ve seen what happens & the stagnation/complacency when there is only 1 Big dog on the block !!!!

  39. 39 takehikes Jul 7th, 2016 at 1:05 pm

    KKR is AMF on steroids. Not that the MOCO doesn’t need some shaking up but KKR will strip it.

  40. 40 Woody's Jul 31st, 2016 at 9:18 pm

    This is nothing like what happened with a AMF, I am so sick and tired of people bad-mouthing AMF. They sank tons of money into Harley and saved it’s ass, they didn’t bury it and liquidate it. Did they screw up the quality by trying to yank the business kicking and screaming out of medieval assembly processes? Yes they did, did they hurt things by trying to speed up production so that they could make enough money that the company wouldn’t continue to slide? Yes. But they never parted anything out and they sunk dollar after dollar into it including repurposing the old munitions plant in New York.

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Cyril Huze