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MILWAUKEE - Harley-Davidson, Inc. (NYSE:HOG) announced Monday it has completed the sale of residual interests in securitized consumer loan receivables, a key milestone in its strategic partnership with investment firms KKR and PIMCO. KKR, currently valued at $123.8 billion in market capitalization, brings significant financial strength to the partnership, with InvestingPro data showing the firm maintains strong liquidity with a current ratio of 1.63.
The motorcycle manufacturer sold 95% of these interests at a premium to par value, generating proceeds exceeding $230 million. The sale represents approximately $2 billion in retail loan receivables and $1.8 billion in related debt as of June 30, 2025. According to InvestingPro analysis, KKR has demonstrated strong market performance with a 16.6% return over the past year and maintains a robust financial health score rated as "GOOD" by InvestingPro’s comprehensive evaluation system.
This transaction removes approximately $2 billion in variable interest entities and $1.8 billion of debt from Harley-Davidson’s balance sheet, according to the company.
The sale marks progress in the previously announced partnership that aims to transform Harley-Davidson Financial Services (HDFS) into a capital-light financing business. Under the arrangement, HDFS will continue to originate retail loans while selling existing and future retail loans to investment vehicles managed by KKR and PIMCO.
"We are on track to complete the transaction as planned and begin the next phase of our partnership, all while continuing to deliver outstanding service levels for our dealers and customers," said Jochen Zeitz, Harley-Davidson Chairman, President, and CEO, in a press release statement.
The company expects to complete the remaining aspects of the transaction by the end of October, including the sale of 4.9% common equity interests to each partner at an agreed $1.8 billion valuation. Upon completion, investment vehicles managed by KKR and PIMCO will begin acquiring new consumer retail loan receivables originated by HDFS. For deeper insights into KKR’s financial metrics and 12+ additional ProTips, including detailed valuation analysis and future growth projections, explore the comprehensive Pro Research Report available on InvestingPro.
Harley-Davidson stated it plans to use the proceeds to support previously announced capital allocation priorities.
In other recent news, KKR & Co LP reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $1.18, compared to the forecast of $1.13. Revenue also exceeded projections, reaching $1.86 billion against the anticipated $1.81 billion. In another development, KKR has emerged as the lead bidder to acquire Nissan Motor Co.’s global headquarters for approximately $610 million, as the automaker aims to divest assets to bolster its financial position. Meanwhile, KKR’s Japanese real estate division, KJR Management, submitted the highest offer among various investment firms. Additionally, KKR announced that its credit funds and accounts are leading a financing package to support Harvest Partners’ investment in Med-Metrix, a company specializing in Revenue Cycle Management solutions for healthcare organizations. In a separate transaction, private equity firm THL Partners has agreed to acquire Headlands Research from KKR, with the deal expected to close in 2025. These recent developments highlight KKR’s active involvement in various strategic transactions and financial activities.
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