Aston Martin gets £500m cash injection
Aston Martin Lagonda has today announced that they have sold a 37.5% stake in the company to Italian private equity firm Investindustrial for £150m.
This comes amid months of speculation as to the future of Aston Martin, even going as far as an official statement a couple of weeks ago from current majority shareholder Investment Dar stating that the company was not for sale. It turns out that they were technically correct, but they were after an investment partner, not a full sale.
Indian company Mahindra and Mahindra were also in the running for investing but Investindustrial won out in the end, thought to be because they offered greater technical tie-in possibilities. Investindustrial previously owned Ducati until they sold it to Audi earlier this year for $1.1bn, but prior to that they had strong links with AMG. This gives hope to AMG being a new technical partner for Aston Martin, as Aston are looking to replace their engine lineup soon given their range is quite old.
Aston Martin chairman David Richards said: "I am delighted that Investindustrial has decided to become a major investor in Aston Martin. With the support of Investment Dar, we have made substantial progress over the past five years in laying the foundations for success as one of the world’s leading luxury sports car manufacturers.
"Investindustrial’s new investment reflects and sustains the unique position of Aston Martin within the industry. With this partnership and the continued commitment of Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans."
Andrea C. Bonomi senior principal at Investindustrial said: "We are looking forward to working with the management and Investment Dar to achieve a similar transformation and rejuvenation that we achieved with Ducati, by expanding the model range and strengthening the dealership network, throughout the world."
What the new deal means is that Aston Martin have firmed up their planned £100m per year, 5 year development plan. This will include engine development work and an all-new Vantage model, followed by an all-new DB9 later on. This investment may also give Aston the backing it needs to invest in a new styling direction.
This is dangerous ground though, given that the current range is arguably the most beautiful range of cars on sale – how do you improve on perfection? Many criticise the current range for all looking too similar though, so it’ll be interesting to see which direction they go in.
What we’re sure of is that this is fantastic news for Aston Martin. They will now be able to grow and improve the range, taking the fight to the competition instead of always playing catchup.
Image courtesy of Aston Martin