The second quarter marked a busy period in powersports for partnerships and M&A deals — some of which were in the works for multiple years and even decades.
Powersports Finance took a look at some of the top deals in recent months. Here are six notable powersports partnerships from 2Q:
1. Harley-Davidson and EagleRider
Harley-Davidson Motor Co. formed an exclusive partnership with EagleRider to develop a motorcycle rental program, the companies announced in early May. EagleRider will exclusively offer current model year Harley-Davidson motorcycle fleets in the touring and large cruiser motorcycle segments, serviced by Harley-Davidson-trained technicians.
EagleRider’s new partnership with Harley-Davidson was more than two decades in the making, EagleRider Chief Executive Chris McIntyre told Powersports Finance.
Pick-up and drop-off points for EagleRider rentals have now expanded to 700 Harley-Davidson dealerships across the U.S., providing customers with a new network of locations to begin or end their rental.
2. Honda and Citi Retail Services
American Honda Motor Co., in partnership with Citi Retail Services, launched the Honda Powersports Revolving Finance Program, along with several dealer incentives, according to a document shared with Powersports Finance in mid-May.
Honda and Citi will offer dealers “fully integrated marketing programs,” special financing for up to 72-month terms, an exclusive rebate offer on new vehicle purchases for the customer and dealer, and comprehensive dealer training, according to the document
3. Northpoint Commercial Finance and Laurentian Bank
Laurentian Bank of Canada reached a definitive agreement under which a subsidiary of the bank, LBC Capital, will acquire powersports financier Northpoint Commercial Finance and its portfolio of approximately $880.2 million.
The transaction, which the companies announced in late May, is expected to close before fiscal yearend 2017 — subject to regulatory notifications and approvals, according to a press release.
4. Wells Fargo CDF and Ducati
Wells Fargo Commercial Distribution Finance extended its wholesale financing programs with Ducati North America Inc. and Ducati Canada Inc., the companies announced in early May. The programs will continue to deliver inventory financing solutions to the manufacturer’s network of dealers, continuing Wells Fargo CDF’s 20-year relationship with Ducati.
5. National Powersport Auctions and Copart
The online vehicle auction and remarketing service Copart Inc. acquired Cycle Express LLC — a California-based private company operating as National Powersport Auctions — the companies announced in early June.
NPA currently operates facilities in Atlanta, Cincinnati, Dallas, Philadelphia, and San Diego. The company plans further expansion, following its acquisition, NPA’s Chief Operating Officer Jim Woodruff told Powersports Finance.
“We’ve known of each other for long time, and the idea of the leader in insurance space and leader in powersports working together became very attractive,” Woodruff said. “When we looked at opportunities and synergies, we were able to come together in a way that will allow us to be bigger and better.”