Investindustrial to sell Ducati

Amy King
14 February 2012

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Italian private equity firm Investindustrial is to sell producer of top-end motorcycles Ducati in the coming months in a deal that could be worth up to €1bn, according to reports.

The Bonomi family-backed private equity house is set to reap a 3x multiple on its original investment and has stated that a global industrial partner is needed to further the international growth of the company.

In March 2006, Investindustrial led the acquisition of 29.9% of Ducati at a price per share of € 0.85. Investindustrial's investment alongside coinvestors totalled €72 million. Two years later, Performance Motorcycles, a vehicle controlled by InvestIndustrial and BS Private Equity, acquired the 70% of Ducati's stock that it did not already own, delisting the company. The offer valued the business at around €570m.

Last year the private equity firm mandated Deutsche Bank and Goldman Sachs to explore a public listing of Ducati in Hong Kong. However, the most likely exit routes under consideration are a trade sale or IPO.

Ducati was founded in 1926 and began as a producer of vacuum tubes, condensers and other radio components. The company now sells around 40,000 top-end motorcycles per year and claims a market share of almost 9% of the global sports motorcycle market.

In 2011, Investindustrial were one of only four private equity houses to close more than one buyout, completing two including the acquisition of 50.68% of Italy's biggest racetrack and sports betting manager, SNAI, for €136m with Palladio Finanziaria.