The McLaren Group has agreed to sell its technology division, McLaren Applied, to investment group Greybull Capital.
McLaren has restructured its business in recent months, selling its Woking headquarters in a leaseback deal which raised £170 million, as well as raising a further £550m from new and existing shareholders.
The latest move sees its technology division sold off to Greybull for an undisclosed sum, allowing the British marque to focus on its automotive and racing divisions.
The applied business will continue to be led by the current management team and will continue to service its existing customer base with Greybull’s investment enabling the company to further expand on its current business strategy.
“The divestment of Applied further enhances McLaren Group’s strategic focus on supercar manufacturing and elite motorsport, with Automotive as the core profit driver,” a group statement said.
“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.”
McLaren has looked to refocus on its core business of automotive, which took a major financial hit last year during the worst of the pandemic. However sales of new cars have rebounded strongly in 2021, whilst its racing division has also seen improved on-track performances in both Formula 1 and IndyCar, with an eye to further expanding into Formula E.
Paul Walsh, McLaren Group Executive Chairman said: “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. 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.”
Anthony Murray, McLaren Applied Chief Executive Officer added: “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. 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.”
The transaction is expected to complete by the end of August 2021.