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Ducati said to attract interest from buyout, motorcycle firms

Saturday, May 20, 2017 - 00:10

[MUMBAI] Iconic Italian motorcycle brand Ducati is attracting interest from private equity firms and motorcycle makers as owner Volkswagen AG considers a sale, people familiar with the matter said.

Buyout firms such as Permira and CVC Capital Partners and companies in the industry including Hero MotoCorp Ltd are weighing bids, the people said, asking not to be identified as the deliberations are private. Eicher Motors Ltd, the maker of the Royal Enfield motorcycle, may also be interested, two of the people said.

A formal sale process may start in the next few weeks for Ducati, which could be valued at more than US$1 billion, the people said. No final decisions have been made, and the companies may decide against an offer, they said.

VW's Audi premium-car division, which owns Ducati, started sounding out potential bidders earlier this year, people familiar with the matter said in April.

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Representatives for Volkswagen's Audi unit, Permira, CVC, Hero and Eicher declined to comment.

The company is working with advisers from Evercore Partners Inc to advise on strategic options, though VW might still decide to keep the marque, the people had said. Chief executive officer Matthias Mueller is attempting to streamline the industrial giant after the company admitted in 2015 to rigging some of its diesel vehicles to cheat emissions tests. It's begun to restore profits and reign in costs.

Ducati, which dates from the 1920s, makes elite racing bikes like the US$35,000 Panigale R, which boasts 205 horsepower and weighs 357 pounds. The company's bikes are used in racing, including the MotoGP and Superbike events.

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