InvestIndustrial To Acquire 37.5% Stake In Aston Martin

reminiscences of a stock operator pdf

InvestIndustrial To Acquire 37.5% Stake In Aston Martin

InvestIndustrial, an Italian private equity firm with €3 billion assets under management agreed to buy 37.5 percent stake in Aston Martin Lagonda Ltd. from Investment Dar, the indebted parent company of sports and luxury car designer and manufacturer, according to the report from Wall Street Journal.

According to InvestIndustrial, the total amount of its investment in Aston Martin through capital increases is around €190 million or $246.4 million. Investment Dar will use the capital infusion to develop new cars for the British luxury brand. The transaction will increase the enterprise value of Aston Martin to approximately €940 million.

The report from Wall Street Journal cited that InvestIndustrial beat Mahindra & Mahindra Limited (BOM:500520), an Indian automaker in the bidding to acquire a stake in the British luxury car designer and manufacturer. Last April, the Italian private equity firm, sold Ducati Motor Holding SpA for € 860 million to Audi, a unit of Volkswagen AG (PINK:VLKAY) (PINK:VLKPY).

The agreement between InvestIndustrial & Investment Dar allows Aston Martin to invest €625 million within the next five years to design and manufacture new cars. The transaction is subject to antitrust clearance.

In a statement, Andrea Bonomi, senior principal at InvestIndustrial said, “We are looking forward to working with the management of 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.”

Ford Motor Company (NYSE:F) sold Aston Martin to Investment Dar for £479 million ($768.8 million) in 2007.

Aston Martin reported earnings of €101 million (EBITDA) and €634 million sales in 2011. The British luxury sports car manufacturer had been struggling for years. Last week, the company reported that it sold 2,340 cars as of September 30. The result is 19 percent lower than the previous year.

Max Warburton, analyst at Bernstein Research estimated in his previous research note that Aston Martin is making less than 5,000 cars this year. Aston Martin is famous for its connection with the movie James Bond.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Marie Cabural
Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.

Be the first to comment on "InvestIndustrial To Acquire 37.5% Stake In Aston Martin"

Leave a comment

Your email address will not be published.