Investindustrial reaps 3x on Ducati exit

Amy King
19 April 2012

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Investindustrial has sold Italian motorcycle designer and manufacturer Ducati to Audi AG, a deal believed to be worth slightly less than €900m.

The sale sees Investindustrial reap an almost 3x money multiple on its investment. Canadian investor Hospitals of Ontario Pension Plan and Italian investor BS Investimenti have also sold their stakes in Ducati to Audi.

Audi intends to continue the globalisation of the brand.

The recent exit follows the trade sale of Italian architectural and engineering business Permasteelisa to JS Group for €573m in August 2011, which also earned Investindustrial a 3x money multiple. The firm is currently raising its fifth fund, which has already attracted more than €1bn.

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

Company
Ducati was founded in 1926 and began as a producer of vacuum tubes, condensers and other radio components. The company now sells around 42,000 top-end motorcycles per year and claims to hold an 11% share of the global sports motorcycle market.

Since Investindustrial invested in 2006, Ducati has focused on international expansion and has recently opened a factory in Thailand. Foreign markets now account for 80% of the firm's sales.

The company generated revenues of €480m in 2011, up from the €305m reported in 2006, the year of Investindustrial's initial investment. EBITDA has increased from €27m in 2006 to €94m in 2011, resulting in an increase in reported EBIT from €5m in 2006 to €51m last year. The firm currently employs 1,135 members of staff.

People
Andrea Bonomi is chairman of Investindustrial. Gabriele Del Torchio is CEO of Ducati.

Advisers
Vendor – Studio Chiomenti (Legal).