08/08/2021
NEWS STORY
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.
For over thirty years Applied has led the digital transformation of motorsport through electronics and data systems, including the supply of the official ECU to F1, and now also develops technologies for sustainable change in automotive, transport, and beyond.
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.
"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," said Paul Walsh, McLaren Group Executive Chairman. "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."
"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," added Anthony Murray, McLaren Applied Chief Executive Officer. "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."
"McLaren Applied is at the forefront of British innovation," said Marc Meyohas, Managing Partner at Greybull Capital. "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.
One has to wonder what Ron Dennis is thinking as the McLaren he left behind is slowly dismantled in its efforts to survive.