As it seeks to shore up its finances following a year of reduced revenues in both its car manufacturing and racing businesses, McLaren has been issuing new shares and selling off assets.
The latest in its restructuring efforts is the sale of its McLaren Applied technology business to investment firm Greybull Capital. Under the deal, McLaren Applied will retain its current management and be able to expand with the new financial backing of Greybull.
The deal, announced on Thursday, is expected to be closed by the end of August. Financial terms were not disclosed.
McLaren Applied was established in 1991, originally as McLaren Composites. The company offers as a product innovations developed in motorsport, including for example real-time data management systems, computer control systems, and electric-vehicle technology.
McLaren's headquarters in Woking, United Kingdom
McLaren was hit particularly hard by the pandemic, resulting in the company having already shed 25% of its workforce, as well as selling a third of its Formula One team, and selling its famous Woking, U.K., headquarters in a lease-back deal.
The company has also issued more debt and shares, including to Ares Management Corp., Saudi Arabia's Public Investment Fund sovereign wealth fund, and existing shareholder Mumtalakat, the sovereign wealth fund of Bahrain.
McLaren will now focus on growing its car manufacturing and racing businesses. The company has just launched the 765LT Spider and is seeing improvements in F1 after years of malaise. McLaren will also expand into Extreme E next year.
“McLaren now has the right strategy and focus to achieve our ambitions as a global luxury supercar and elite motorsport business, underpinned by a more sustainable capital structure,” Paul Walsh, McLaren's chairman, said in a statement.