Ducati
Country: Italy
Region: Emilia-Romagna
Investors: Investindustrial
Despite a very difficult climate for motorcycle manufacturers, under the guidance of private equity, Ducati has performed impressively over the past six years. Investindustrial invested in Ducati in 2006 and has since grown EBITDA nearly four-fold through active repositioning and long-term investments in the company’s product range and global reach.
The two key value creation pillars of the Ducati investment were operational improvement and international expansion – both central to Investindustrial’s operationally driven approach. As a result of this strategy, Ducati launched 17 new models during the investment period and now captures 80% of its revenues from overseas markets. Investindustrial sold the company in 2012.
Gabriele Del Torchio
CEO - Ducati
The strong partnership with Investindustrial has allowed Ducati to fully exploit the potential of the brand.
10.6%
market share, up from 4.1% in 2006
80%
of Ducati sales now in overseas markets
What did the business need?
Operational improvement
International and organic expansion
Product range innovation with workforce increase to support demands
Weather difficult economic market climate
How did private equity backing create lasting value?
Significant focus on improving R&D, resulting in 17 new models launched during Investindustrial ownership
Accelerated investments in global sales and distribution
Expanded into new markets such as Brazil, China and India
Opened a factory in Thailand in 2011 and initiated manufacturing activities in Brazil in the same year
What outcomes did private equity investment achieve?
Increased market share in sport performance motorcycles from 4.1% in 2006 to 10.6% in 2011
Grew revenues from €305m to €480m and EBITDA from €27m to €94m
In 2011, Ducati recorded its highest sales (42,000 motorcycles) and EBITDA ever
Close to 100 new jobs created across both Europe and Asia
Foreign markets now account for 80% of Ducati’s sales
Investors
