McLaren Group agrees sale of McLaren Applied
Following a strategic review to focus the company's growth as a global luxury supercar and elite motorsport business, McLaren Group has agreed to sell its Applied business division to Greybull Capital.
The business will continue to be led by McLaren Applied's current management team and to service its existing customer base with Greybull's investment enabling the company to further expand on its current business strategy.
The divestment of Applied further enhances McLaren Group's strategic focus on supercar manufacturing and elite motorsport, with Automotive as the core profit driver. It builds on the Group's recent equity raise and launch of a comprehensive debt refinancing, as well as the successful introduction of minority investment into McLaren Racing last year.
McLaren Applied will continue to operate its technology business focused around transformative and innovative products in electrification and telemetry, control and analytics. Greybull's investment will support the company's strategy to exploit new market opportunities while continuing to build on its history in motorsport and automotive applications.
Paul Walsh, McLaren Group Executive Chairman said:
"The completion of the strategic review of Applied is the latest in a series of proactive steps to build a more focused and profitable Group. McLaren now has the right strategy and focus to achieve our ambitions as a global luxury supercar and elite motorsport business, underpinned by a more sustainable capital structure. At the same time, we are delighted that Greybull's investment will provide a strong platform for McLaren Applied to innovate and grow as a world-class technology, data insight and analytics business."
Anthony Murray, McLaren Applied Chief Executive Officer said:
"We are delighted to secure the investment which will underpin our strategic intent to pioneer a better future, leveraging our electrification and telemetry, control and analytics capability. We remain focused and committed to our existing customer and market segments of motorsport, automotive and public transport and this additional investment will ensure we can provide long-term stability and additional finance to develop market leading innovations for our customers."
Marc Meyohas, Managing Partner at Greybull Capital said:
"McLaren Applied is at the forefront of British innovation. For over 30 years, McLaren Applied has helped lead the way on the digital and electric evolution of motorsport and the application of these Formula 1 technologies is becoming increasingly widespread. Applied is playing a key role across the transport sector providing solutions that allow for greater resource efficiency, connectivity and electrification."
The transaction is expected to complete by the end of August 2021. Financial terms were not disclosed.