KTM Join The Paths to Continue Advancing

 The Austrian brand and the Spanish firm sign an agreement that could end in a total integration. They say that great agreements have to be cooked over a slow fire and it seems that the agreement between KTM and Gas Gas has been forged in a pot of clay and embers. It is undeniable and evident that KTM has had its sights set on Gas Gas for a long time, probably since before the bankruptcy was announced, back in July 2015. At that time the approaches began, but it has not been until now, when the Austrian has decided take sides of the situation.

KTM is undoubtedly becoming the Volkswagen Group of motorcycles, with numerous acquisitions here and there to complement its catalog on all fronts: there was even talk of a possible purchase of Ducati by KTM! Where they see an opportunity to grow, there they are, willing to drop euros in abundance. Looking for the KTM 500 exc led headlight? Here it is. And without a doubt, the Gas Gas brand with its Torrot electric motorcycle division represented a golden opportunity to grow.

But as I was saying, this agreement is marked by controversy, since the Gas Gas workers did not receive KTM well when it was interested for the first time. For this reason, KTM is not talking about an acquisition, but about the creation of a Joint Venture between KTM and Black Toro Capital, owner of the Gas Gas and Torrot brand. Gas Gas Motorcycles is born, with 60% of the capital in the hands of KTM. 

The agreement looks very good for both parties, which in the end is what is important: that everyone is satisfied. Gas Gas will take advantage of KTM's technology and vast sales network to improve its products and better sell them around the globe. For its part, KTM will take advantage of Gas Gas' knowledge in the field of trial bikes, where the Austrian does not have much knowledge, and in electric bikes, a key factor for the future of mobility and of a large group like wants to be KTM.

It seems that everyone wins with this agreement. Gas Gas has a three-year cushion to continue with the Salt factory, in Girona, open and producing. An air cushion that you must know how to take advantage of to guarantee the continuity of the company. If the company is owned by KTM or Black Toro Capital, I don't think it is too relevant either: the important thing is to continue producing, continue generating jobs and continue generating wealth.

And I believe that this agreement will be as important for Gas Gas as the one signed by Seat with Volkswagen a few decades ago. If they know how to take advantage of their opportunity and manage to create the expected synergies, I believe that both brands can start a very profitable journey together. The important thing is to move forward and what would not be strange is that over time, KTM ends up taking 100% of the shares and full control of the Spanish firm. They want to be a monster on two wheels!