James Bond’s favorite car maker Aston Martin gets rescue investor

February 02, 2020 0 Comment

By: Noah M.

A Canadian billionaire has engineered a plan to rescue Aston Martin that includes slapping the name of the iconic but struggling automaker on his Formula One racing team.

Former fashion tycoon Lawrence Stroll is leading a consortium that will pay 162 million British pounds, or about $213 million, for a 16.7 percent stake in the company behind James Bond’s favorite luxury sports car, Aston Martin said Friday.

Stroll will also rename his Racing Point Formula One squad after Aston Martin starting in the 2021 racing season as part of a rescue package that aims to raise 500 million pounds — or $659 million — for the company as it grapples with weak sales. He will also become executive chairman of Aston Martin’s board once the deal is complete, according to the company.

“I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands,” Stroll said in a statement. “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 fulfill Aston Martin Lagonda’s potential.”

The other 318 million pounds of the fundraising effort will come from a rights issue, in which existing investors will be able to buy new shares at a discounted price at a certain date in the future.

A sales decline following Aston Martin’s October 2018 listing on the London Stock Exchange left the luxury automaker searching for a financial lifesaver. The British automaker called 2019 a “disappointing year,” saying it was unable to wholesale as many cars as planned despite a 12 percent increase in retail sales.

Aston Martin CEO Andy Palmer said the company will benefit from Stroll’s experience in luxury brands and the automotive industry. Stroll — who has a collection of Ferraris and owns the Quebec Ferrari dealership — is known for building up Tommy Hilfiger and leading the initial public offering for Michael Kors.

“The actions announced today will allow us to implement and deliver on our reset plan and provide Aston Martin Lagonda with a sustainable platform for the future,” Palmer said in a statement.