Invest in Quality Businesses
The Case of Ducati
Ducati (www.ducati.com) is a leading manufacturer of sports and performance motorcycles. The company sells motorcycles throughout the world and operates a network of distributors and shops in Italy, the US, France, Germany, the UK, Japan and the Benelux countries. Ducati produces and sells approximately 40,000 motorcycles per year and has approximately a 6% market share in the sports motorcycle segment.
In March 2006, Investindustrial led the acquisition of 29.9% of Ducati. In December 2008, as a result of the tender offer launched in April 2008, Investindustrial and its co-investors increased their shareholding to 100% and the company was subsequently delisted.
Ducati was identified as a company in need of refocusing and an ideal opportunity to further develop a strong, well known brand. Together with a strong management team, Investindustrial has been able to significantly increase profitability by investing in research and development, improving working capital, streamlining production, implementing cost cutting actions and developing a more suitable sales mix.
The success of the new strategy can be read in the 2008 results: sales grew by 18% reaching €469 million and EBITDA increased by 43% reaching €78 million. A key part of the initial investment case is the launch of new, strategic motorcycle models which is scheduled to take place in 2009-10.