Italian private equity fund Investindustrial, the former owner of motorcycle company Ducati, has bought a 37.5 percent stake in Aston Martin. The deal cements the British sports car company's existing $240m a year product development program for the next five years.
Indian-based commercial vehicle producer Mahindra and Mahindra was previously thought to be the front-runner for a stake in Aston Martinl, offering a significantly greater cash injection. Although Investindustrial has relationships with AMG, a tie-in with Mercedes' performance arm is not part of the deal. Investindustrial has significant contacts within the industry, according to a spokesman, who referred to Aston Martin's partnerships with other OEMs, including Ford and Toyota.
Investindustrial owned Ducati until earlier this year when it sold the company to Audi for $1.1 billion.
Under the new deal, Investindustrial will become a shareholder alongside current majority shareholder Investment Dar and minority shareholders, Dr.. Ulrich Bez and David Richards. Investindustrial will be a minority shareholder, with four of the nine board seats.
Aston Martin chairman David Richards said: "I am delighted that Investindustrial has decided to become a major investor in Aston Martin. With the support of Investment Dar, we have made substantial progress over the past five years in laying the foundations for success as one of the world's leading luxury sports car manufacturers.