Renault Group has raised €200m from investors including US actor Ryan Reynolds to boost its position in Formula 1 racing.
This is through its Alpine Racing Ltd subsidiary in the UK, which finished in the top 4 in the 2022 F1 World Championship.
Alpine Racing SAS, the entity manufacturing F1 engines in Viry-Châtillon, France, is not part of the transaction and will remain entirely owned by Renault Group.
“Formula 1 and Alpine are strategic assets for Renault Group,” said Luca de Meo, CEO of Renault Group. “Over the past two years, we have re-ignited Alpine, capitalizing on its iconic A110 sports coupé, boosting it by entering Formula 1, where it aims to become a championship contender. This partnership will accelerate Alpine F1 development by diversifying revenue drivers and increasing brand value.”
- Renault, Valeo team up for the software-defined vehicle
- Renault in extensive reorganisation
- Renault creates industrial digital twin ‘metaverse’
The investment comes from Otro Capital and partner RedBird Capital Partners, along with Maximum Effort Investments. The deal, for 24%, values Alpine Racing at around $900 million and will accelerate Alpine’s growth plans and sporting ambitions in F1.
The investor group is more famous for its backing of Wrexham football club in the UK, Toulouse FC in France and the Dallas Cowboys in the US. Alpine sees the expertise and track record in the sports industry including media, sponsorship, ticketing, hospitality, commercial rights management, licensing, and merchandising as well as expertise in data and technology.
“This association is an important step to enhance our performance at all levels,” said Laurent Rossi, CEO of Alpine. “First, Otro Capital, RedBird Capital Partners and Maximum Effort Investments, as international players with strong track record in the sports industry, will bring their recognized expertise to boost our media and marketing strategy, essential to support our sporting performance over the long term. Second, the incremental revenue generated will in turn be reinvested in the team, in order to further accelerate our Mountain Climber plan, aimed at catching up with top teams in terms of state-of-the-art facilities and equipment.”
Leave a comment