- Minority stake values Aston Martin at UK£1bn
- Arctos will provide “extensive resources” to boost the team’s reach
Arctos Partners has purchased a minority stake in the Aston Martin Formula One team, valuing the team at a reported UK£1 billion (US$1.2 billion).
Announced before the Las Vegas Grand Prix, this represents the first external investment in the Silverstone-based team since majority shareholder Lawrence Stroll purchased the outfit.
This is not Arctos’ first move into motorsport, as the private equity group was part of the deal that saw Harris Blitzer Sports & Entertainment (HBSE) secure a minority investment in Nascar team Joe Gibbs Racing.
While financial terms were not disclosed, the Financial Times reported that the deal valued Aston Martin at UK£1 billion, although the percentage stake purchased is unclear.
“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, executive chairman of the Aston Martin Formula One team.
“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.”
While the value of Formula One teams has soared in recent years – Forbes estimated that Aston Martin is worth US$1.375 billion – the British teams latest accounts showed a UK£52.92 million (US$65.79 million) loss in 2022.
The private equity firm “will provide extensive resources” to boost the team’s reach as it seeks further growth moving forward.
Arctos Partners, which invested in HBSE last year, has been noticeably active in recent years, with investments including minority stakes in the National Basketball Association's (NBA) Golden State Warriors, Sacramento Kings and Utah Jazz.