Aston Martin drivers Fernando Alonso and Lance Stroll on the Las Vegas Grand Prix opening event Wednesday night. (Getty Images)
With Formula 1 preparing for the Las Vegas Grand Prix, Canadian billionaire Lawrence Stroll has sold a minority stake within the Aston Martin team to U.S. private equity firm Arctos Partners.
The investment by Arctos, which has a stake within the Boston Red Sox and Liverpool Football Club owner Fenway Sports Group, values the F1 team at about £1 billion ($1.2 billion), in accordance with an individual acquainted with the deal.
It’s the primary time Stroll has sold shares within the F1 team, which his son Lance drives for. He can be the biggest shareholder in Aston Martin Lagonda Global Holdings Plc, the British luxury carmaker. Aston Martin’s other F1 driver — Fernando Alonso — is currently fourth within the standings.
Bloomberg reported last month that Aston Martin team had been approached by potential backers.
“The Formula One teams appreciated in value significantly over the previous few years resulting from the recognition of the game, resulting from cost caps,” Stroll said at Aston Martin’s F1 headquarters at Silverstone, the house of the British Grand Prix. “So, we’ve had conversations, but there’s nothing on the cards.”
The deal comes on the eve of the much-hyped Las Vegas Grand Prix this weekend and shows the growing appeal of F1 within the U.S., the Aston Martin team said in a press release on Thursday.
It’s the most recent in a string of deals and rising valuations in F1, which has seen its popularity soar within the U.S. thanks largely to the success of the Netflix documentary series “Drive to Survive.”
In June, Renault’s F1 team Alpine secured €200 million from RedBird Capital and Otro Capital, in addition to actors Ryan Reynolds and Rob McElhenney, valuing it at €800 million. MSP Sports Capital led a funding round into McLaren’s F1 team in December 2020, which also included Walmart heir Rob Walton, Bloomberg News reported last month. The investment valued McLaren at £560 million, the corporate said on the time.
Vegas is the third F1 Grand Prix to be held within the U.S. this season after races in Miami and Austin. Liberty Media Corp. has invested heavily in marketing the game within the US since buying the game in 2017.
The funding for the F1 team comes as Stroll continues to attempt to turn across the listed carmaker, which he rescued in 2020. The group has since carried out multiple capital raises, bringing in investors resembling Saudi Arabia’s Public Investment Fund.
The terms and the valuation of the F1 deal, which is anticipated to shut by the top of the yr, weren’t disclosed. Raine Group advised Aston Martin on the investment.
This Article First Appeared At www.autoblog.com
