LONDON – Aston Martin, the maker of luxury cars made famous by James Bond movies, said on Friday that it had secured crucial financing by selling a stake to a Milan-based investment firm.
The private equity firm Investindustrial agreed to pay £150 million, or $241 million, for a 37.5 percent stake in Aston Martin, which is privately held.
Investindustrial has experience in investing in the motor industry after it sold Ducati, the Italian motorcycle maker, to Volkswagen’s Audi for more than $1 billion earlier this year.
The investment firm beat Mahindra & Mahindra, an Indian automaker, in a competition for the stake. The rest of Aston Martin continues to be owned by a Kuwaiti company, Investment Dar, and a group of individual investors.
The cash injection is critical for the iconic car brand, whose financial struggles have forced it to defer investing in new technology and models just as competition in the luxury market heated up. Aston Martin said Friday that it planned to invest more than £500 million to upgrade its production and technology.
Andrea C. Bonomi, senior principal at Investindustrial, said in a statement that at Aston Martin the investment firm plans “a similar transformation and rejuvenation that we achieved with Ducati, by expanding the model range and strengthening the dealership network, throughout the world.”
Investindustrial has about €3.1 billion, or $4 billion, of assets under management, including investments in an Italian retail company, a perfume company and a firm offering hair loss remedies. The investment firm was founded in 1990 by the Bonomi family, one of Italy’s well-known dynasties that amassed their wealth in the construction and industrial sectors. Investindustrial employs more than 50 people and is mainly investing in companies in Southern Europe.
Aston Martin, which was founded in 1913, is the only major luxury car maker that remains independent from the world’s largest car companies. Ford Motor sold the company to Investment Dar in 2007. A decline in consumer demand because of the economic crisis and a lack of funds to keep up with brands like Fiat’s Ferrari had hurt earnings at the firm, which produces all its models at a single plant in Britain..
Despite the difficulties, Aston Martin cars continue to be a fixture in James Bond movies, including the latest film “Skyfall.” The character of James Bond started to drive Aston Martins in the 1964 film “Goldfinger,” the third movie in the series.
DealBook: Private Equity Firm to Buy Stake in Aston Martin
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DealBook: Private Equity Firm to Buy Stake in Aston Martin
