Yahoo Autos Alpine gets $200 million Hollywood investment
Alpine has attracted $218million (€200m) of investment for a 24% stake in the Formula 1 team from a group of investors including Ryan Reynolds, Michael B. Jordan and Rob McElhenny.
The investment group is comprised of Otro Capital, RedBird Capital Partners and Reynolds’ Maximum Effort Investments (MEI), and according to Alpine brings “a strong track record of company-building with recognized partners such as the Dallas Cowboys, Fenway Sports Group, the NFL, Toulouse FC and Wrexham AFC”. Otro Capital co-founder Alec Scheiner will join Alpine Racing’s board as part of the investment.
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The deal values the F1 team at around $900m, and does not include the power unit manufacturing company (Alpine Racing SAS) in France that will remain wholly owned by the Renault Group.
“Formula 1 and Alpine are strategic assets for Renault Group,” Renault CEO Luca de Meo said. “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.”
Alpine CEO Laurent Rossi says the investment will help the F1 team close the gap to the frontrunners over the coming years by being able to invest in facilities and personnel.
“This association is an important step to enhance our performance at all levels,” Rossi said. “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.”
New board member Scheiner says Otro Capital will bring added value to the Alpine brand in North America, while MEI co-founder James Toney says more focus can be brought to the team, having secured massive interest in British lower-league soccer team Wrexham AFC through the ‘Welcome to Wrexham’ documentary on FX and Disney+.
“Maximum Effort Investments focuses on unlocking value through the power of storytelling, and we believe there is tremendous untapped potential in Alpine Racing,” Toney said. “We are eager to help shine a light on this incredible team.
“We’re thankful to our partners at Otro Capital and RedBird Capital Partners and look forward to diving in with them, as well as our co-investors Michael B. Jordan and Rob McElhenney.”
