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It’s a big week for Italian Motorcycle companies. First, The Harley-Davidson MV Augusta buyout was finalized and now it looks like Ducati will be sold to a group of existing investors. The deal, which will see a minority group of shareholders purchase the remaining 70% of the company for about $579 million. The deal has already been approved by regulators and is expected to go through next month, it will see Ducati delisted from public trading.
Performance Motorcycles S.p.A. is an investment vehicle formed by three of Ducati’s main shareholders: Investindustrial, BS Investimenti and Hospitals of Ontario Pension Plan.

But what does this mean for Ducati fans? Not much. The buyout is being conducted by a conservative group of investors who foresee continued success for the Bologna-based company. Ducati achieved a net profit of €13.3 million in 2007, seeing worldwide bike shipments increase 18.7 percent to 38,365 units. Ducati North America also posted record sales this June. If anything, the sale puts the company on firmer financial ground, enabling it to meet its promise to introduce 10 new models by 2010.

via Dealernews
 

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Its all good...at least they weren't bought out by HD!!:rolleyes:
 

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It’s a big week for Italian
If anything, the sale puts the company on firmer financial ground, enabling it to meet its promise to introduce 10 new models by 2010.

10? I hope they are well thought out and not just designer bikes. I hope one of the 10 is a nicely sorted ST replacement. Another is a remodel on the MTS. Other than that, I could give a crap.
 

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They'll receive whatever value the shares were worth at the time the deal was approved unless the board negotiated something different. Nothing to fret about. Turn over your shares, get $$$.
 

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But what does this mean for Ducati fans? Not much. The buyout is being conducted by a conservative group of investors who foresee continued success for the Bologna-based company. Ducati achieved a net profit of €13.3 million in 2007, seeing worldwide bike shipments increase 18.7 percent to 38,365 units. Ducati North America also posted record sales this June. If anything, the sale puts the company on firmer financial ground, enabling it to meet its promise to introduce 10 new models by 2010.

via Dealernews[/QUOTE]

I don't view this as a positive. Private Equity firms (like two of the members of the buyout group) traditionally hold companies for 3 to 5 years. During that time they tend to operate their portfolio companies very conservatively. This often means holding off on capital expenditures (e.g. developent of newer models, opening up new plants, expanding etc.) and cutting costs as much as possible. The idea is to get the company in the best financial shape possible in those 3-5 years so that they can sell it to a strategic buyer (i.e. another larger manufacturer).

This sets the company up well for future growth (with the next new buyer), but you might see some pain in the near future.
 

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Sad news. I used to teach at a technical college that was a publicly traded institution. And the exact same thing happened. One group bought out the rest, and it went "private". And in fact one entity was the holder's of Florida Teachers Pension Fund. Let me tell you what happened next - curriculum quality was mandated changed (went down) to save money, less staff/more student acceptance (even to those previously not "accepted"), a multi-million dollar profit one year went to a 40+ million dollar deficit the next after the buy-out (they unshouldered some previous expenditures onto the school, which is legal), AND they began combining a number of tehcnical schools under its umbrella. The basic gist is - take somethign that is successful, play off some of your debt on to it. Show some loss on it a few years, and get the credit and subsidies from the loss. Then after a while shake it off to a wholesale price that is at that time around what you paid initially. In the end you now have less the debt you unshouldered, you gained the credit subsidy money as profit, and the sell out at not a loss (might even make some money). It used to be called a hostile take-over, and often bodes ill for that which is taken over.

I hope not the case.

And HD thing is a different story, and contrary to what others may think - might have actually been a better route for Duc, as HD would have just let them go their own way.
 

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No Worries

I'm not too worried here. Ducati was owned by Texas-Pacific Group (a private equity firm) from 1996 to 2005 when they went public again. Arguably, TPG was responsible for much of Ducati's current success.

Investindustrial Holdings took a controlling stake from TPG in early 2006.

This is just capital diversification by Investindustrial to realize some gain on its investment. Unlike a Carl Icahn, you're not going to see a Pension Fund take an activist role with company management..eh.
 

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Enkidu, I hope you are right. The difference I see with the TPG scenariio is they bought a struggling company and brought it up. But now they are a successful company, and a different ball game......

I really do hope they just sit back let Duc do its thing, and just take their reward as a keep-hush fund. No interferring......
 

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Spity',

interesting view.

U prolly right these cats don't change their spots?

Kinda a rule in life , always beware and know your openents form.

As you say HD might have been the kinder option?

Fuego.
 

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I don't think that this is good. I worked for a semiconductor company they span off a well know brand. They went public and were very successful. Later a private group bought the company and borrowed a lot of money. The company not only had to survive but also pay a ton of money for the interest. The company started laying people off to save money and today they are struggling. I hope that this will not be the case for Ducati.
 

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..........................
And HD thing is a different story, and contrary to what others may think - might have actually been a better route for Duc, as HD would have just let them go their own way.
Just like the did with Buell??:rolleyes:
 

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I don't think that this is good. I worked for a semiconductor company they span off a well know brand. They went public and were very successful. Later a private group bought the company and borrowed a lot of money. The company not only had to survive but also pay a ton of money for the interest. The company started laying people off to save money and today they are struggling. I hope that this will not be the case for Ducati.
This thread is over a year old. Ducati is still in business regardless of who has owned it for the past fourteen months.
 
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