New McLaren Group unifies McLaren Automotive and McLaren Technology Group with one winning future
30 Jun 2017
- The formation of the new McLaren Group will underpin the continuing rapid growth of McLaren’s businesses and brand
- The new McLaren Group unites McLaren Automotive – a globally-renowned producer of luxury sports and supercars – with McLaren Technology Group which includes one of the world’s oldest and most successful race teams and a high growth technology IP and consulting business
- The Bahrain Mumtalakat Holding Company and the TAG Group will remain as the long-term majority shareholders of the new group and Shaikh Mohammed bin Essa Al Khalifa will become its Executive Chairman
- Mike Flewitt, Jonathan Neale and Zak Brown continue in existing roles
- Ron Dennis marks his 70th birthday with decision to step down as Chairman and agrees to sell his shareholdings in both companies
- McLaren Group has secured finance in order to acquire Ron Dennis’s shareholdings, stimulate growth in its wider businesses and consolidate its financial arrangements
(Woking, UK) McLaren Automotive and the McLaren Technology Group are being brought together under one corporate structure to be called the McLaren Group. The announcement unifies all activities under a single coordinated strategy and brand, allowing the exceptional reputation of each business for technological excellence to be used across the entire Group for the benefit of all its customers, partners and employees.
The Bahrain Mumtalakat Holding Company and TAG Group become the McLaren Group’s long-term majority shareholders. Shaikh Mohammed bin Essa Al Khalifa will be McLaren Group’s Executive Chairman, Mansour Ojjeh its Executive Committee Principal. Mike Flewitt continues to lead McLaren Automotive as Chief Executive Officer while McLaren Technology Group Chief Operating Officer Jonathan Neale and McLaren Technology Group Executive Director Zak Brown also continue in their current roles.
The TAG Group first invested in McLaren in 1984 and is the longest standing of the McLaren Group’s shareholders. They were joined ten years ago by the Bahrain Mumtalakat Holding Company. Both remain committed to McLaren and excited for its next phase of growth.
Mansour Ojjeh said:
“Since I became a major investor in the business 33 years ago, I am exceptionally proud of what each of our extraordinary McLaren businesses have achieved, growing independently and entrepreneurially. Now, as they have reached world-class scale and success, it is the right next step to unify the strategies and brands to create a stronger centre of Luxury Automotive, Racing and Technological excellence.
“In a matter of just seven short years, McLaren Automotive has established itself as one of the world’s leading creators of luxury sports and supercars. Its products are now routinely hailed as best-in-class. Mike Flewitt and his team have done, and are continuing to do a brilliant job, and the company’s recent announcement of a fourth consecutive year of profitability indicates a robust future. The new McLaren 720S, the first car to be launched under its Track22 business plan, is already sold out well into 2018 and there will be a lot more exciting cars where that came from.
“McLaren Racing, part of McLaren Technology Group, is not currently achieving the on-track success in Formula 1 that we know it is capable of, and that it has achieved in the past, but that will change. As motor racing is in our DNA, we exist to win in Formula 1 and be the best in everything we do. Jonathan Neale and Zak Brown, supported by Eric Boullier and the best engineers, mechanics and marketers in Formula 1, are fully engaged in the process of bringing about that turnaround, and it will be great to see McLaren back in the winners’ circle before too long.
“McLaren Applied Technologies continues to go from strength to strength. Partnering with companies that share our visionary determination to innovate, it is becoming profitable as well as pioneering ground-breaking technologies. And its scope for development is exciting. This is an area of our business in which we intend to invest, with a view to achieving consistent growth.”
Shaikh Mohammed bin Essa Al Khalifa said:
“McLaren is unique, due to its strong heritage and passion to be best in everything it does, but also because no other company in the world can claim a corporate structure that comprises automotive, motorsport and applied technologies. It’s clear that as one Group, each of those three pillars of our business will support and enhance the other two.
“Together they will embark on what I firmly believe to be a new and even more successful era in the McLaren brand’s dynamic and fascinating 54-year history.”
The McLaren Group employs 3,400 people located largely at its iconic McLaren Technology Centre headquarters in Woking, UK, and in 2016 had a combined turnover of £898 million. McLaren Automotive celebrated the production of its 10,000th car in December 2016 and now sells its family of Sports Series, Super Series and Ultimate Series products across 30 global markets. The entrepreneurial McLaren Technology Group encompasses McLaren Applied Technologies, McLaren Marketing and McLaren Racing which has won 182 Formula 1 Grands Prix and 20 Formula 1 World Championships.
The announcement follows the decision of Ron Dennis CBE to step down as the Chairman of McLaren Automotive and McLaren Technology Group reaching agreement with his fellow shareholders to sell his shareholdings in both companies. McLaren Group has secured long-term financing to acquire these plus stimulate growth in its wider businesses and consolidate its financial arrangements.
J.P. Morgan is acting as financial adviser to the McLaren Group and will be leading a debt capital markets financing for the transaction.
The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or any U.S. state securities laws, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. No public offering of any securities referred to herein is being made in the United States. This announcement may not be distributed, directly or indirectly, in or into or from any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. This announcement does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities referred to herein in the United States or in any other jurisdiction. The offer and the distribution of this announcement and other information In connection with the offer in certain jurisdictions may be restricted by law and persons into whose possession any document or other Information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This announcement is directed only at (I) persons who are outside the United Kingdom or (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
Notes to Editors:
A selection of high resolution images accompanying this release is available to download from the McLaren Automotive media site – cars.mclaren.press
About McLaren Automotive:
McLaren Automotive is a British manufacturer of luxury, high-performance sports and super cars, located at the McLaren Technology Centre (MTC) in Woking, Surrey. For the past 30 years, McLaren has pioneered the use of carbon fibre in vehicle production and since introducing a carbon chassis into racing and road cars with the 1981 McLaren MP4/1 and 1993 McLaren F1 respectively, McLaren has not built a car without a carbon fibre chassis.
Following the global launch of McLaren Automotive in 2010, the groundbreaking 12C was revealed in 2011, the 12C Spider in 2012, and the limited-run McLaren P1™ went into production in 2013. In keeping with its plan to introduce a new model each year, the company unveiled the 650S, in Coupé and Spider form in 2014, while 2015 proved to be a year of unprecedented growth of the product portfolio with five new models launched across the full range. The strictly limited edition 675LT Coupé premiered at the Geneva Motor Show alongside the track-only McLaren P1™ GTR which, with 1,000PS, became the most powerful model ever produced by the brand. The much-anticipated Sports Series became the third – and final – model tier in the McLaren range with the 570S Coupé and 540C Coupé debuting in New York and Shanghai respectively, less than one month apart. The end of 2015 saw the launch of the fifth model, the 675LT Spider, which was as a direct response to customer demand. The year also saw the end of production for the first model in the Ultimate Series as the 375th McLaren P1™ was completed, closing what had become a defining year for the British brand. 2016 continued where 2015 had left off with the introduction of the 570GT - a second bodystyle for the Sports Series and the most luxurious car McLaren has ever built, as well as the 570S GT4 and 570S Sprint track variants. 2016 also marked the introduction of the company’s new business plan, Track22, which sees the company investing £1B in Research and Development to deliver 15 all new cars or derivatives by the end of 2022, of which at least 50% will feature hybrid technology. The uplift in sales in 2016 also saw the launch of the second shift at the McLaren Production Centre as well as the company’s third year of profitability in just six years of trading. In March 2017, the second-generation Super Series was introduced at the Geneva Motor Show with the global premiere of the McLaren 720S. The first-ever Sports Series convertible, the McLaren 570S Spider, was launched in June 2017.
McLaren Automotive Partners
To support the development, engineering and manufacture of its range of innovative and highly acclaimed sports cars, McLaren Automotive has partnered with world leading companies to provide specialist expertise and technology including, AkzoNobel, Kenwood, Pirelli, Richard Mille and SAP.
Visit cars.mclaren.com for more details.
Global Communications & PR Director | McLaren Automotive
Phone: +44 (0) 1483 261500
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Chief Communications Officer | McLaren Technology Group
Phone:+44 (0) 1483 261900
Mobile: +44 (0) 7976 835878