An agreement was reached for German Volkswagen’s Audi to buy Italian motorcycle manufacturer Ducati from its owner Investindustrial SpA for about $1.1 billion (860 million euros) including debt of about $260 million (200 million euros.)
The deal, minus debt, should be signed today and would value Ducati at about seven times last year’s earnings before interest, taxes, depreciation and amortization.
Last year, Ducati sold about 42,000 motorcycles worldwide with a strong progression in North America. Revenue for for 2011 were $630 million (480 million euros)In April 2008 the Volkswagen Group already tried to buy Ducati before eventually losing out to Investindustrial SpA. Ducati will be the 11th brand in VW’s portfolio, alongside high-end car brands like Bentley, Lamborghini and Bugatti. Since February ,when Investindustrial SpA publicly announced its intention to sell Ducati, Daimler AG which makes Mercedes-Benz cars and Hero MotoCorp Ltd., India’s biggest motorcycle manufacturer, had also expressed interest in the Italian brand . Are we going to see Ducatis in Audi showrooms?