Volkswagen is thinking about a possible sale of Italian motorbike maker Ducati as Europe’s largest automaker simplifies operations to help fund a strategic overhaul following its emissions scandal, 2 individuals knowledgeable about the matter said.
Volkswagen is reining in spending throughout the group, consisting of cutting thousands of jobs at its core passenger-car brand, to assist pay for a multibillion-euro shift to embrace electric cars and trucks and brand-new mobility services.
VW has tasked investment banking boutique Evercore with assessing possible alternatives including a sale of the Ducati brand, which its Audi department acquired for about 860 million euros ($935 million) in 2012, the sources stated.
The automaker has started reaching out to prospective buyers to sound out their interest, no decision has been handled whether the brand will be sold, they added.
VW referred to Audi for comment. Audi and Evercore refused to comment.
Among the sources stated Ducati made yearly incomes prior to interest, taxes, depreciation and amortization (EBITDA) of approximately 100 million euros and could bring a valuation of approximately 1.5 billion euros, or 15 times its core incomes – a multiple much like that of Ferrari,
A banker near to the market said potential buyers were likely to provide VW a revenues multiple of more than 10.
The motorcycle maker may attract peers in China, India’s Hero or investors such as the consortium that purchased British sports car maker Aston Martin in 2007, the sources stated.