Aston Martin, Mercedes up linkage through added ownership stake, strategic cooperation
Tobias Moers, Chief Executive Officer of Aston Martin Lagonda, spent more than 25 years in senior roles at Diamler AG, the parent company of Mercedes-Benz AG, prior to assuming the role in August 2020. "Today's expansion of our partnership with Mercedes-Benz AG is a critical step towards achieving our goals for Aston Martin. The capabilities of Mercedes-Benz AG technology will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently in the areas that truly differentiate our products," he said in a statement regarding the news.
Mercedes already has a strategic partnership with Aston Martin. The new agreement allows the German automaker to become a more heavily invested long-term partner, supplier, and shareholder through a number of initiatives. These initiatives will effect everything from product development and technology offerings to fiscal stability.
Mercedes has given Aston Martin new financing. It is comprised of:
- £125 million in new ordinary shares
- £259 million equivalent in new second lien notes which mature in 2026 with detachable warrants incorporated representing 5.0% of the fully diluted issued share capital of Aston Martin following the proposed Mercedes-Benz AG share issuances
- £840 million equivalent of first lien notes, which mature in 2025 and a refinanced revolving credit facility of £87 million maturing in 2025
Aston Martin is targeting 10,000 units of sale each year with $2 billion in revenue by 2024-2025, according to the announcement.
J.P. Morgan and Barclays were instrumental in helping put Goethe the agreement.
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