Private equity firm Investindustrial invests £150m in Aston Martin

Aston Martin

European private equity firm Investindustrial said on Friday it agreed to buy a 37.5% stake in UK sports and luxury cars maker Aston Martin Lagonda Ltd for GBP150m (USD240.4m/EUR186m) via a capital increase.

The statement came to confirm an earlier report by Reuters that a deal might be announced today.

The private equity investor, controlled by the Italian Bonomi family, managed to oust Indian commercial utility vehicles company Mahindra & Mahindra Ltd, which was the frontrunner in the race for the stake. Under the terms of the transaction, Investindustrial will get proportional voting rights in the target. Kuwaiti Investment Dar Company KSC will retain its major interest in the UK firm.

In a separate announcement, Aston Martin said that the current deal gives it an enterprise value of GBP780m compared to a value of GBP630 before the agreement, and does not include a technical partnership deal with Daimler AG’s (ETR:DAI) Mercedes, contrary to some analysts’ expectations. Aston Martin also unveiled plans to put more than GBP500m into a new product and technology programme over the next five years. It noted that it would keep its production facility in Gaydon, Warwickshire.

The deal is seen to secure regulatory approval in the first quarter of 2013.

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