http://www.insideline.com/audi/audi-buys-ducati-for-11-billion.htmlJust the Facts:
•Audi, the premium arm of the Volkswagen Group, has agreed to purchase Ducati, the Italian superbike maker, for a reported $1.1 billion.
•The acquisition of Ducati, from the Italian private-equity firm Investindustrial, gives the VW group a 12th brand in a broad transportation portfolio that now ranges from two-wheelers to ultra-luxury and -performance cars and even heavy-duty trucks.
•The deal makes Audi the chief custodian of VW's ever-expanding portfolio of Italian firms — a collection that also includes Lamborghini and Italdesign Giugiaro.
INGOLSTADT, Germany — Audi, the premium arm of the Volkswagen Group, has agreed to purchase Ducati, the Italian superbike maker, for a reported $1.1 billion.
In a brief statement Wednesday, Audi said the VW supervisory board approved the deal, the logic of which has been criticized by a number of European auto analysts.
The acquisition of Ducati, from the Italian private-equity firm Investindustrial, gives the VW group a 12th brand in a broad transportation portfolio that now ranges from two-wheelers to ultra-luxury and performance cars and even heavy-duty trucks.
Reuters said analysts have questioned the deal, saying it makes little economic sense and "solely reflects VW Chairman Ferdinand Piech's passion for the Italian company." Besides Piech, notable Ducati owners include actors Brad Pitt and Tom Cruise.
The official press release quoted Audi Chairman Rupert Stadler as saying: "Ducati is known worldwide as a premium brand among motorcycle manufacturers and has a long tradition of building sporty motorcycles. It has great expertise in high-performance engines and lightweight construction, and is one of the world's most profitable motorcycle manufacturers. That makes Ducati an excellent fit for Audi."
It also makes Audi the chief custodian of VW's ever-expanding portfolio of Italian firms — a collection that also includes Lamborghini and Italdesign Giugiaro.
Founded in 1926 in Bologna, Ducati began making motorcycles in 1949 and currently operates manufacturing plants near its headquarters and in Thailand. Last year, it built and sold around 42,000 bikes, generating revenue of about $630 million.