Perth-based Vmoto Limited has announced the establishment of a European beach head in Barcelona, Spain following the signing of a Memorandum of Understanding to acquire key assets of CSR Motorcycles SrL Spain (CSR).
CSR is a Barcelona based motorcycle, ATV and scooter company with in-house design, distribution and production facilities.
This proposed acquisition is in-line with Vmoto's previously announced strategy of becoming a fully integrated global motorcycle, ATV and scooter company, which includes the development of a strong positioning in the very large
European scooter market.
The European market for scooters is the largest and most mature, representing approximately 6 million unit sales in CY2007 (equating to approximately $11.2 billion) and growing at an average rate of 9.7% per annum.
Spain, along with Italy, is one of the largest components of the European market, where scooters are a well accepted means of alternative transport, suited also to the warmer Mediterranean climate.
Spain is also a recognised centre of innovation and design for the European scooter market.
The proposed CSR acquisition, planned to take effect from the end of April 2008, is subject to final due diligence and documentation.
It represents the first step in establishing a European presence and is being completed in conjunction with other acquisition opportunities currently under review following Managing Director Patrick Davin's most recent trip to
Europe.
The new Vmoto European operation will also house a business development unit dedicated to increased OEM sales for the Chinese scooter and engine manufacturing department.
CSR was formed in 2004 and is a profitable distributor of its own high quality branded scooters and ATV's which are manufactured in China.
CSR currently has a major retail distribution network throughout Spain.
The head office and primary distribution centre is based in Barcelona.
Key management and staff will be retained by Vmoto as part of the proposed acquisition, including CSR Managing Director, Mr Carlos Sotelo. Carlos Sotelo is a respected figure in the European motorcycle market, from both an industry and motorsport perspective.
