New owner for Aston Martin

Italian private equity fund Investindustrial – the former owner of motorcycle company Ducati – is set to acquire a 37.5 per cent stake in Aston Martin Lagonda for £150 million  ($A230m) in a deal that will secure the British car-maker’s product development for the next five years.

Under the new financial deal, Investindustrial will become a shareholder alongside current majority shareholder Investment Dar and minority shareholders, Dr Ulrich Bez and David Richards. Investindustrial will be a minority shareholder, with four of the nine board seats.

Investindustrial trumped a bid from India’s Mahindra and Mahindra, even though the latter was rumoured to have brought a larger pot of cash to the table.

According to reports, Investindustrial plans to pump in £500 million ($A765m) in product development and technology over the next five years, erasing any question marks over Aston Martin’s medium-term future.

Some sources have speculated Investindustrial’s relationship with Mercedes-Benz’s AMG performance arm could result in a technology transfer of engines and transmissions from the German firm to Aston Martin, but there is as yet no conclusive evidence to indicate this will be the case.

That said, the notion of replacing Aston Martin’s ageing Ford-developed Duratec 6.0-litre V12 with a state-of-the art new-generation V12 that Mercedes has developed for its latest W222 Series S-Class certainly has merit.

“I am delighted that Investindustrial has decided to become a major investor in Aston Martin. With the support of Investment Dar, we have made substantial progress over the past five years in laying the foundations for success as one of the world’s leading luxury sports car manufacturers,” said Aston Martin chairman David Richards.

“Investindustrial’s new investment reflects and sustains the unique position of Aston Martin within the industry. With this partnership and the continued commitment of Investment Dar, we look forward to working with our shareholders as we realise our vision and exciting future plans.”

Andrea C Bonomi, senior principal at Investindustrial added: “We are looking forward to working with the management and 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.”

Aston Martin currently has 146 dealers in 41 countries, while its headquarters at Gaydon employs a workforce of 1600 people.

Although the company celebrates its centenary in 2013, it has manufactured just 65,000 cars over the past 100 years. The majority of these have come in the last 10-15 years, with last year’s global sales volume amounting to about 4200 cars.

Aston Martin’s highest-ever annual sales were in 2007, when it sold 6850 cars.

Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at the carsales mobile site