Chapter 25
Ducati and Investindustrial:Racing out of the pits and over the finish linea
It was a clear sunny day on June 5, 2010 in Mugello, Italy as Andrea C. Bonomi, the founder of Investindustrial, watched Team Ducati clinch the first place at the 2010 Moto GP Gran Premio D’Italia qualifications. As he ducked out of the stadium to head back to Lugano, Switzerland, Bonomi’s mind moved away from Ducati’s success on the track to its performance as an investment. Many events had transpired since Investindustrial uncharacteristically invested in a listed company by buying a stake in Ducati in 2005. At that time, the legendary bike manufacturer was on the verge of bankruptcy. Overleveraged and fraught with cash problems, Ducati was about to default on its existing loan obligations as the bank was unwilling to restructure the debt. Investindustrial rescued the company by injecting cash and taking over the remaining 30% equity stake of the Texas Pacific Group (TPG).
Over the next few years, Bonomi employed his hands-on style to effect a “revolution” inside the company that turned Ducati’s financial position around. The changes also unleashed the passion for innovation that Ducati had always been known for and the company began revamping its dusty product line.
In 2008, as the financial crisis started to unfold, Bonomi had a choice to alter his investment in Ducati. He was contemplating his options of exiting the investment, buying the remaining 70%, or maintaining the 30% stake.
