FOR IMMEDIATE RELEASE: TEXAS PACIFIC GROUP, CASTIGLIONIS FORM JOINT VENTURE TO BUY DUCATI Bologna, Italy, September 30, 1996 -- A company that will be called Ducati Motor S.p.A., a newly formed joint venture between a group of investors led...
FOR IMMEDIATE RELEASE:
TEXAS PACIFIC GROUP, CASTIGLIONIS FORM JOINT VENTURE TO BUY DUCATI
Bologna, Italy, September 30, 1996 -- A company that will be called Ducati Motor S.p.A., a newly formed joint venture between a group of investors led by Texas Pacific Group and including Claudio and Gianfranco Castiglioni, today announced it had acquired all of the assets of Ducati motorcycles from the Castiglioni brothers and the Cagiva Group. Terms of the transaction were not disclosed.
Texas Pacific Group, based in San Francisco and Fort Worth, TX, manages TPG Partners, L.P., of Fort Worth, a $720 million private investment partnership that specializes in corporate acquisitions in a wide range of industries. Its principals include David Bonderman, James G. Coulter and William S. Price. The partnership has completed acquisitions in the airline, healthcare, food, wine, entertainment, telephone, energy and waste management industries.
Ducati manufactures high-performance motorcycles best known for their consistent victories in the World Superbike Championship. The motorcycles retail between ITL 15 million and ITL 60 million ($10,000 - $40,000) and feature unique proprietary engine technology, frame and body design that allow superior handling at high speeds -- the most important product characteristic for the growing "sport bike" segment of the world motorcycle market. Ducati plans to expand its "Desmodronic" two-valve engine technology into the burgeoning "sport touring" segment and will also introduce a new engine technology to produce a single cylinder racing bike.
- more -
Claudio Castiglioni, chairman of the new company, said: "Our partnership with Texas Pacific Group will now allow us to do what we do best -- make the world's greatest and fastest motorcycles. We thank our loyal customers who have waited so long and our suppliers who have stood by us during our period of transition. Today marks a new era for Ducati."
David Bonderman, founding partner of Texas Pacific Group, said, "Ducati is a company with a great product, a great brand and great management. We are enthusiastic to help Ducati aggressively grow production and sales in the coming years."
The transaction will allow the company to expand sales worldwide in response to growing demand. Ducati currently sells motorcycles in 40 countries with 70% sales concentrated in Europe.
Ducati was purchased by the Castiglionis in 1985, and sales have mushroomed in the past decade, growing at an annual rate of 25% between 1990 and 1995. Ducati's 1995 sales were approximately ITL 300 billion ($200 million) on volume of 20,000 motorcycles.
Deutsche Morgan Grenfell acted as advisor to Texas Pacific Group in the completion of this transaction. A bank group led by Deutsche Morgan Grenfell and including Banque Paribas and Banca Commerciale Italiana provided financing for the transaction.
# # #