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Aston Martin sells stake in team to private investment firm

NEWS STORY
16/11/2023

Aston Martin has entered an agreement for Arctos Partners to buy an undisclosed stake in the team which is now valued at around £1bn.

As part of this new partnership, Arctos, which has significant experience of investing in sports, will provide Aston Martin with deep sports industry knowledge, and a network of influential relationships to support its continued growth.

The agreement will give Arctos ownership of a minority shareholding in AMR Holdings GP Limited ("AMR"), the team's holding company and according to the Financial Times values the team at £1 billion.

The investment is expected to close by year end, with Arctos the first and only professional investment platform approved to invest in multiple franchises across MLB, NBA, MLS, NHL, and European football, among other sports.

Arctos brings strategic strength, deep sports connections and key learnings at a time when the Silverstone-based team is undergoing rapid progress.

The months ahead will see the team complete its state-of-the-art AMR Technology Campus with the opening of a new wind tunnel and additional engineering facilities - key milestones as the team takes positive strides to establish its position at the front of the grid.

"I am delighted to welcome Arctos Partners as a new partner and minority shareholder in the Aston Martin Aramco Cognizant Formula One Team," said Lawrence Stroll. "As investors in several leading sports franchises, Arctos brings deep industry knowledge, and I am thrilled that Aston Martin will be joining such a prestigious portfolio. The team has enjoyed tremendous success this season with eight podium finishes and our biggest points haul as a team, but our collective ambition is greater.

"Arctos see the potential and value of this project as we continue to build a world-class Formula One team. They share our vision for our ultra-luxury brand, and they are extremely passionate about the sport and its prospects. We are investing in infrastructure, people and processes, and this is the perfect time to add strength in depth with the operational expertise and strategic experience of Arctos. Together, we will continue to drive this team forward and build an even brighter and successful future."

"We look forward to collaborating with Aston Martin Aramco Cognizant Formula One Team and view the opportunity as the beginning of a long-term partnership with Lawrence and the entire organisation," added Doc O'Connor, Managing Partner, Arctos Partners. "This investment is consistent with our firm's strategy, which focuses on backing leading sports brands across North America and Europe.

"We will provide extensive resources to enhance Aston Martin Aramco Cognizant Formula One Team's reach and brand, including industry intelligence sourced from our proprietary quantitative research and data science platform. Aston Martin Aramco Cognizant Formula One Team is a leading name in Formula One, one of the fastest growing sports in the US, and we are truly excited to be entering the sport alongside Lawrence and his team."

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READERS COMMENTS

 

1. Posted by kenji, 18/11/2023 0:48

"@Brighton Corgi...the reason I mentioned Tsunoda was not because I thought that he'd be an upgrade but because he came with the engine supply..... as an add on."

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2. Posted by elsiebc, 17/11/2023 14:59

"I don't understand the importance of "deep sports industry knowledge". With all the talk this weekend about the "show" wouldn't they be better off looking toward the Hollywood industry?"

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3. Posted by BrightonCorgi, 17/11/2023 13:38

"@kenji - Is Tsunoda any better than Stroll? Is his personality any brighter? I don't see him as an upgrade. Maybe Lando Norris could be swayed away from McLaren? Perhaps Leclerc could be an option for AMF1?"

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4. Posted by kenji, 17/11/2023 13:24

"@Brighton Corgi....what you haven't done is look at the Honda factor. With Honda coming into PU play could Tsunoda fill the empty slot should Lance Stroll decide upon a new career? Alpha Tauri have Lawson to utilise and as Marko has stated Lawson will be in F1 in the future...maybe not '24 but for sure in '25."

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5. Posted by BrightonCorgi, 17/11/2023 13:10

"I would never 2nd guess Lawrence Stroll's business roadmap. So far things are coming into place. To think where Racing Point was and where AMF1 is in just couple of seasons is pretty impressive. They are on track with his grand plans. Only the economy and inflation hampering their goals.

I think next season will be Lance's last unless there is a turn in his fortune. He needs to really work on his Qualifying if he wants to keep his seat. He's quite apt at passing drivers on Sunday, but when you start in the back it's hard to really get up there in points.

I foresee Lance being a factory driver for their sports car program. Aston Martin has done well over the decades with sports car racing.

If Lance is no longer their driver, who would replace him? I'd like to see someone who'd better promote the brand and portfolio. Lance is a quiet nice kid who's not a salesperson. Alonso can sell product. Would it be worth giving Mick Schumacher a go perhaps? The Schumacher name is certainly a feather in the cap, but he's also on the quiet side too. Can Kimi be convinced to drive for Aston Martin?

The buyers for Aston Martin cars are more in line with the older well established names in F1 rather than 20 year old phenoms."

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6. Posted by kenji, 17/11/2023 6:21

"To date I've not seen any numbers that disclose just what the minority share is as a % of the total issued shares. It might be simply that a small holding was purchased at a premium which if extrapolated would realise a value of massive proportions. It woud also be interesting to know if the previously touted figure of $200M for an entry fee. is a documented number or just something plucked out of the ether! If the former then with the FIA agreeing to a bona fide entry for Andretti Cadillac how can Liberty enforce a major increase? I rather sense that AM/Stroll 'et al' are possibly playing out a strategy here to stiff any additional teams being allowed to compete. If they do get to compete then they will have to pay a gigantic sum of money that even GM might decide is not worth the angst!. One billion dollars / one thousand million dollars for an F1 license is simply nuts. "

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7. Posted by dejan, 17/11/2023 2:40

"Deep sports industry knowledge = has so much money that even if they lost all of it in this venture they'd still have a similar amount of money left"

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8. Posted by TokyoAussie, 17/11/2023 2:00

"What is deep sports industry knowledge?"

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9. Posted by The stogie, 17/11/2023 1:15

"Step One for Stroll to bail out? After all Lance has indicated he wants to become a tennis pro. "

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10. Posted by Burton, 17/11/2023 0:13

"Interesting...so now there's another shareholder and one with supposed sports know-how, will they put up with a certain underperforming second driver?"

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11. Posted by ZJAY, 16/11/2023 23:09

"Exactly what many of us have been saying, namely that the value of an F1 teams is 1B. So Andretti cannot enter with paying 200M. "

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