Ducati Increases Stake in Accessories & Apparel
20 November 1999Ducati Motor Increases Stake in Technical Accessory Company Gio.Ca.Moto to 99.9%
BOLOGNA, Italy, -- Ducati Motor Holding S.p.A., a leading manufacturer of high performance motorcycles, announced today that it has increased its stake in technical accessories and apparel company Gio.Ca.Moto International s.r.l. to 99.9% from 50% for ITL 1.75 billion (US$937,649). This transaction, which was approved by Ducati's Board of Directors on November 18 and will be completed in January 2000, will allow Ducati to further capitalize on its fast-growing DucatiPerformance accessory business. "We are excited about expanding our stake in Gio.Ca.Moto which further underscores our increasing commitment to Ducati's accessory business," said Carlo Di Biagio, Ducati Chief Financial Officer. "This represents a strategic step in our development of the World of Ducati, and we look forward to seeing the fruits of the transaction in the near future." During the meeting, Ducati's Board of Directors also approved the budget for year 2000 that reaffirms the Company's stated sustained growth goals in terms of sales of motorcycles, spare parts and accessories and apparel. Ducati Motor Holding will also adopt all the necessary measures to fully comply with Borsa Italiana S.p.A.'s recently established Code of Conduct. While compliance is voluntary, the Board of Ducati maintains that this is a necessary step for upholding business ethics and transparent behavior. Ducati Motor Holding already meets a large majority of the requirements to date, and the Board, on November 18, approved taking the necessary steps to meet the remaining Code of Conduct requirements. Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. Ducati has won eight of the last ten World Superbike Championship titles and more individual victories than the competition put together. The Company produces motorcycles in four market segments which vary in their technical and design features and intended customers: Superbike, Supersport, Monster and SportTouring. The company's motorcycles are sold in more than 40 countries worldwide, with a primary focus in the Western European and North American markets.