The Surrey-based automotive institution has received £70 million from existing shareholders as part of a wider capital-raising effort that could see it seek up to £500 million from investors.
The supercar manufacturer and Formula One team owner McLaren Group has received £70 million in funding from investors as part of a larger capital-raising scheme.
The funding was provided by a group of the automotive manufacturer’s existing shareholders.
According to sources, the share sale was part of a larger effort to strengthen McLaren’s balance sheet. With the company seeking up to £500 million to finance its business plan for the electric vehicle era.
McLaren is supported by the sovereign wealth funds of Bahrain and Saudi Arabia in addition to several private investors.
It follows months of delivery delays for McLaren’s new Artura hybrid supercar.
McLaren had to implement what it termed “technical upgrades to ensure Artura customers enjoy optimal long-term performance” despite the vehicle’s positive reception.
These upgrades have been impacted by the supply chain delays that have hampered global automotive production, compelling the Woking-based company to halt Artura production and customer deliveries until the end of 2017.
As part of an additional £100m financial commitment to the company. It was revealed late last year that Mumtalakat had acquired a portion of McLaren’s valuable heritage car collection.
According to sources, the ongoing fundraising of up to £500 million is in addition to the $100 million.
On a November earnings call for the third quarter, McLaren stated that it was “in active discussions with all shareholders regarding a recapitalization of the group,” but did not specify the size or structure of a potential transaction.
Since McLaren Racing is now a separate company, the new money will go to McLaren Automotive.
Michael Leiters, a former Ferrari executive, was appointed head of McLaren’s road-car division last year.
During the COVID-19 pandemic, the company was compelled to undertake a comprehensive restructuring that resulted in the elimination of hundreds of positions and the raising of substantial amounts of equity and debt to repair its balance sheet.
Zak Brown has turned around McLaren’s racing section. Which includes the Formula One car driven by Lando Norris and Oscar Piastri this year.
Since applying for a government loan but being denied, McLaren has made several business transactions.
Former Diageo CEO Paul Walsh, who joined McLaren in 2020 as executive chairman, oversaw the sale of a stake in McLaren Racing to a separate group of investors and the sale-and-leaseback of its spectacular Surrey headquarters for £170 million.
In addition, McLaren Applied Technologies, which generates revenue from sales to corporate clients, was sold in 2021.
The organization, founded in 1963 by Bruce McLaren, has one of the most recognizable names in British motorsport.
Its drivers have included Mika Hakkinen, Lewis Hamilton, Alain Prost, and Ayrton Senna.
In its inaugural season, the team won 180 Grands Prix, three Indianapolis 500s, and the Le Mans 24 Hours.
McLaren’s on-track endeavors contribute approximately 20% of the company’s annual revenue.
McLaren reunited its divisions after Ron Dennis, the F1 team’s most successful boss, left in 2017.
After a heated dispute with fellow shareholders, Mr. Dennis sold his stake in a £275 million transaction.
