03-12-07: Ford Motor Company announced today that it has tied up a deal to sell their majority stake of British sports car brand Aston Martin. As a part of Ford's "Way Forward" corporate turnaround, the company opened the dialogue to find ways to sell off some of it's holdings that were considered expendable.
Aston Martin is a high end luxury brand that builds only a small number of cars a year that are priced from about $140,000 to well over $200,000. While the company has a loyal following and is a prestigious brand to have in the family, it is far from being much more than a halo.
The sale is expected to close during the second quarter and is subject to customary closing conditions, including applicable regulatory approvals. The transaction values Aston Martin at $925 million. As part of the transaction, Ford will retain a $77 million stake in the automaker.
In the end, this is not a bad balance as the company has been left in better steed than it was when Ford acquired it. The new owners have some of the best products in showrooms that have ever worn the Aston Martin badge.
"The sale of Aston Martin supports the key objectives of the company, to restructure to operate profitably at lower volumes and changed model mix and to speed the development of new products," said Alan Mulally, Ford's President and chief executive officer. "From Aston Martin's point of view, the sale will provide access to additional capital, which will allow Aston Martin to continue the growth it has experienced under Ford's stewardship. Today's announcement is good for Ford Motor Company, good for Aston Martin and good for the UK. We wish Aston Martin every possible success for the future."
The new owner of Aston Martin is a consortium comprised of: David Richards, founder and chairman of Prodrive, a world-leading motorsport and automotive technology company; John Sinders, an avid Aston Martin collector and a backer of Aston Martin Racing; and Investment Dar and Adeem Investment Co, international investment companies headquartered in Kuwait.
Ford gains big time by the sale, with nearly a billion dollars in cash. More importantly, they will be out from under the enormous costs involved with keeping the low volume but high dollar Aston Martin cars fresh.
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