Audi to pay $1.12 billion for Ducati, including debt
AUDI HAVE AGREED TO BUY Ducati from current owners, Investindustrial, for about 860 million euros ($1.12 billion), including debt, sources familiar with the companies told news agencies recently. The iconic Bolognese manufacturer’s total liabilities are less than 200 million euros, according to Investindustrial, and the deal would value Ducati at about seven times last year’s earnings before interest, taxes, depreciation and amortisation, minus debt.
The deal was formally approved at the recent annual VW shareholders’ meeting by a 20-member supervisory board.
Volkswagen Chairman Ferdinand Piech, who turned 75 recently, has long coveted the brand, publicly expressing interest in buying Ducati four years ago before eventually losing out to Investindustrial.
This purchase will now make Ducati the 11th brand in VW’s portfolio, along with such renowned supercar marques as Lamborghini and Bugatti and heavy-duty truck manufacturers Scania AB and MAN SE.
In 2011, Ducati sold about 42,000 motorcycles and generated a revenue of about Euro 480 million. Its range include cruiser, supermoto, adventure, naked and superbikes such as the muscular Diavel and dual sport Hypermotard. However, some industry analysts are of the opinion that Ducati’s acquisition will have very little economic or technological benefi ts for its parent company in the long run and that the transaction came through only as a result of Piech’s passion for exotic brands.
