Send
Print
John Chapman
The UK group of companies McLaren has agreed to sell a third of its racing division McLaren Racing, which runs the Formula 1 team, to a consortium of American investors, according to a statement on its website.
Initially, McLaren will transfer 15% of the company to the Americans, but by the end of 2022 this share will peak at 33%. As a result of the deal, the British will receive 185 million pounds ($ 245 million). The entire McLaren Racing is valued at 560 million pounds ($ 740 million). The deal will not affect premium car maker McLaren Automotive and will remain 100% owned by the McLaren Group.
The consortium of investors was formed by MSP Sports Capital with two partners, one of which is the investment arm of the Swiss bank UBS. McLaren expects the investment to help it fulfill its plan to return to the top 10 of Formula 1. McLaren Racing CEO Zak Brown has named MSP Sports Capital a leading sports investor.
McLaren needed money to support the racing division and improve its financial situation, writes Bloomberg. It needs to pay off debt on bonds that expire in 2022 and spend on new models to keep up with competitors like Ferrari, the agency explained. "The money will go straight to the race so they can keep going. This is a very good deal that will benefit the entire group," McLaren Group Chairman Paul Walsh commented to Bloomberg. He noted that the pandemic has not greatly affected the racing business, and he would have closed a deal anyway, regardless of the coronavirus.
source: bloomberg.com
Initially, McLaren will transfer 15% of the company to the Americans, but by the end of 2022 this share will peak at 33%. As a result of the deal, the British will receive 185 million pounds ($ 245 million). The entire McLaren Racing is valued at 560 million pounds ($ 740 million). The deal will not affect premium car maker McLaren Automotive and will remain 100% owned by the McLaren Group.
The consortium of investors was formed by MSP Sports Capital with two partners, one of which is the investment arm of the Swiss bank UBS. McLaren expects the investment to help it fulfill its plan to return to the top 10 of Formula 1. McLaren Racing CEO Zak Brown has named MSP Sports Capital a leading sports investor.
McLaren needed money to support the racing division and improve its financial situation, writes Bloomberg. It needs to pay off debt on bonds that expire in 2022 and spend on new models to keep up with competitors like Ferrari, the agency explained. "The money will go straight to the race so they can keep going. This is a very good deal that will benefit the entire group," McLaren Group Chairman Paul Walsh commented to Bloomberg. He noted that the pandemic has not greatly affected the racing business, and he would have closed a deal anyway, regardless of the coronavirus.
source: bloomberg.com
