German auto giant Volkswagen AG's premium
car division Audi AG has said it will acquire Italian luxury motorbike maker Ducati Motor Holding SpA from its owner Investindustrial SpA for undisclosed terms.
As the
supervisory boards of Audi and Volkswagen gave their approvsl, reports pegged the total deal value at Euro 860 million or $1.12 billion, including debt.
"It (Ducati) 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," said Rupert Stadler, chairman, board of management of Audi.
The company did not divulge any details about the transaction but said that transaction would be completed once it is authorised by competition authorities.
Ducati is well known as a leading motorcycle brand and has manufacturing operations at its headquarters in Bologna, Italy and a factory in Thailand. Ducati also maintains a series of importer companies in strategic markets.
According to Audi, sectoral experts predict motorcycle market to post strong growth over the next few years, especially in Asia.
In 2011, Ducati sold around 42,000 motorcycles and generated revenue of about Euro 480 million. Its range include cruiser, supermoto, adventure, naked and superbikes such as the muscular Diavel and dual sport Hypermotard.
The acquisition of Ducati has added a motorcycle maker to Volkswagen's nine brands, which include Audi, Skoda and Lamborghini as well as heavy truckmakers Scania AB and MAN SE.
With inputs from agencies 
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