Canadian billionaire Stroll buys minority stake in Aston Martin
Aston Martin secured a £500-million (Cnd$865-million) lifeline to restore the balance sheet and help build a new sport-utility vehicle after agreeing to sell a minority stake to billionaire Lawrence Stroll.
The deal gives the U.K. luxury carmaker much-needed breathing space as it looks to get back on track following a turbulent start to life as a public company.
Aston Martin needs funds to ease a debt burden and start building the DBX, its first SUV, which chief executive Andy Palmer is banking on to sell in higher volumes than the stylish sports cars made famous in the James Bond movies.
Stroll will become executive chairman, according to a statement.
Stroll, a Canadian investor who owns a Formula One racing team, won the backing of Aston Martin’s board. He edged out rival suitor Geely of China, which also sought to invest. Stroll’s consortium will pay £182 million for a 16.7-percent stake, before contributing to a rights issue supported by major shareholders to raise a further £318 million.
Stroll, 60, made his fortune building and selling two fashion brands. He and his partner, Silas Chou, took Tommy Hilfiger public in 1992 and later sold it to private-equity buyers.
In 2011, they listed the Michael Kors brand, eight years after acquiring majority control.
Stroll also led a group of investors who took over the Force India Formula One team after it was pushed into administration.
Renamed Racing Point, it is based in the U.K. and gets its engines from Mercedes-benz. Stroll’s son Lance is a driver for the team.