Aston Martin sells 38% stake to Italians to raise cash

Aston Martin sells 38% stake to Italians to raise cash

By Ollie Kew

Motor Industry

07 December 2012 10:30

Aston Martin today announced a deal with Italian private equity fund Investindustrial, securing a £150m investment to own a 37.5% stake in the business.

Aston Martin hopes this should secure the long-term future of the beloved but hitherto financially wobbly sports car maker. Together with the new owners, it announced a £500m investment in future product.

What are the details of the Aston Martin-Investindustrial deal?

Investindustrial, the previous owner of Italian superbike icon Ducati, has bought a 37.5% stake in Aston Martin shares through a 'capital increase'. The deal brings in new ownership, in addition to the majority shareholder Investment Dar, which continues to own the bulk of Aston stock.

Today's deal shores up the company's finances and 1600 British-based jobs.

What does the change in Aston Martin's ownership mean for new sports cars?

The deal sets out a five-year vision for Aston, which will see a £500m investment in new products for the company. Since the sell-off from Ford in 2007, Aston has been in a precarious position as a minnow in a global market; unlike Porsche, Ferrari, Maserati or Lamborghini, it doesn't have a major car maker behind it any more.

Owners say the capital injection will allow it to capitalise on the recovering luxury car market, as well as booming sales in its Chinese and Russian markets.

Aston Martin sale: the owners comment

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 The 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 The Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans.'

Andrea Bonomi, senior principal at Investindustrial, was similarly optimistic in this morning's statement: 'We are delighted to form part of this iconic global, but quintessentially British brand. 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.'

Don't forget Ducati was sold to Audi in 2012; having a buy-out group on board suggests the long-term plan for Aston may ultimately involve a turnaround and sale. It'll be intriguing to see how their plans unfold in the coming years.

For CAR's previous reports on the Aston Martin sale story, please view our News Watch pages by clicking here. And here's a reminder of what all the fuss is all about. Watch CAR's video review of the new Aston Martin Vanquish in our player below.