Harley-Davidson Eyes Ducati SaleYes. You read that correctly.Ducati Motor Holding is on sale, and America’s most iconic company, Harley-Davidson, is interested.
The Milwaukee-Based brand known for its cruisers has hired Goldman Sachs to work on the financials. Bids for Ducati, which was bought by Volkswagen in 2012 for $1.13 billion, are expected in July.The price? A reported $1.67 billion (1.5 billion Euros).Volkswagen is currently working with investment management company Evercore. The sale of Ducati, which is controlled by VW’s Audi division, arrives after VW’s diesel emissions scandal that cost the company billions.Harley-Davidson had a sour experience in the past with Italian motorcycle manufacturers after it purchased MV Agusta for $109 million (mostly debt) in 2008. Two years later, after cleaning up MV Agusta’s debt, Harley sold the Italian manufacturer back to the Castiglioni family, which continue to own MV Agusta today.This news also aligns with Harley-Davidson’s bold initiatives, which were reported in Harley’s 2017 Q1 financial report.Harley says its 10-year growth strategy focuses on five objectives:
- Build two million new Harley-Davidson riders in the U.S.
- Grow international business to 50 percent of annual volume
- Launch 100 new, high-impact motorcycles, which begin with the new Street Rod and Road King Special
- Deliver superior return on invested capital for Harley-Davidson Motor Company (S&P 500 top 25%)
- Grow the business without growing its environmental impact