The Formula 1 team, Aston Martin Aramco Cognizant has announced an investment from the U.S. private equity firm, Arctos Partners in the team for a minority shareholding.
According to reports, the stake sale, whose specifics were not made public, valued the racing group at one billion pounds ($1.24 billion).
The agreement, which is expected to be completed by the end of the year, will give Arctos a minority stake in AMR Holdings GP Ltd, the parent company of Aston Martin F1.
The Formula 1 team is backed by the British luxury carmaker, in which Stroll owns more than 25% of the stock.
Lawrence Stroll, Executive Chairman of Aston Martin Aramco Cognizant Formula 1 Team, said, “I am delighted to welcome Arctos Partners as a new partner and minority shareholder in the Aston Martin Aramco Cognizant 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.”
Doc O’Connor, Managing Partner, Arctos Partners, said, “We look forward to collaborating with Aston Martin Aramco Cognizant Formula One Team and view the opportunity as the beginning of a long-term partnership with Lawrence and the entire organisation. This investment is consistent with our firm’s strategy, which focuses on backing leading sports brands across North America and Europe.
“We will provide extensive resources to enhance Aston Martin Aramco Cognizant Formula One Team’s reach and brand, including industry intelligence sourced from our proprietary quantitative research and data science platform. Aston Martin Aramco Cognizant Formula One Team is a leading name in Formula One, one of the fastest growing sports in the US, and we are truly excited to be entering the sport alongside Lawrence and his team.”
The Aston Martin Aramco Cognizant Formula 1 Team will receive extensive sports-related expertise and a strong network of important contacts from Arctos as part of this new partnership, which is the company’s first in Formula 1. This will contribute to the organization’s future development.
During a period of rapid advancement in Formula 1 for the Silverstone-based team, Arctos brings strategic durability, deep sports links, and significant learnings. As the team makes progress towards solidifying its place at the front of the grid, the upcoming months will witness the completion of its cutting-edge AMR Technology Campus and the grand opening of a new wind tunnel as well as further engineering facilities.