Canadian billionaire, and owner of F1 racing team Racing point, Lawrence Stroll has acquired 20% of Aston Martin Lagonda for £182m.
A major decline in sales led to the iconic British luxury carmaker suffering a difficult year, putting pressure on the company to seek alternative funding to secure the future of Aston Martin Lagonda.
Stroll and his consortium will initially acquire a 16.7% stake, which could rise to 20% upon completion of the company’s plan to raise a total of £500m.
He said: “I am very pleased that I, and my partners in the consortium, have reached agreement with the board and major shareholders to make this significant long-term investment. Aston Martin Lagonda makes some of the world’s most iconic luxury cars, designed and built by very talented people. Our investment announced today underpins the company’s financial security and ensures it will be operating from a position of financial strength.
“I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands. I believe that this combination of capital and my experience of both the motor industry and building highly successful global brands will mean that, over time, we fulfil Aston Martin Lagonda’s potential.”
Commenting on the announcement, Penny Hughes, Aston Martin Lagonda Chair, said: “The difficult trading performance in 2019 resulted in severe pressure on liquidity which has left the Company with no alternative but to seek substantial additional equity financing. Without this the balance sheet is not robust enough to support the operations of the group. Notwithstanding recent weak trading, the strength of the Aston Martin brand and our expanding portfolio of cars has allowed us to attract a strong new partner in Mr. Stroll to support the turnaround of the business.”
Dr Andy Palmer, Aston Martin Lagonda President and Group CEO, continued: “Today’s fundraising is necessary and provides a platform to support the long-term future of the Company. Mr. Stroll brings strong and proven expertise in both automotive and luxury brands more widely which we believe will be of significant benefit to Aston Martin Lagonda. Following a comprehensive review, today we announce a series of immediate actions to reset, stabilise and de-risk the business, positioning it for controlled, long-term profitable growth. These include rebalancing supply-demand dynamics, reducing capital expenditure and the re-phasing of some future product launches, together with cost-efficiency initiatives.”
Shares in Aston Martin Lagonda surged more than 30% this morning following the announcement.