Williams F1 team sold to US investors to secure financial future
Acquisition by Dorilton Capital ends family-ownership of one of motor racing’s most successful teams
Williams, the Formula One team, has been acquired by US investment group Dorilton Capital in a deal that secures the British racing outfit’s future in the sport.
The last family-owned business in the global racing series, which was founded by Frank Williams in 1977 and run in recent years by his daughter Claire, put itself up for sale last month. The decision was a concession that Williams could no longer remain independent while competing against better funded teams such as Mercedes, Ferrari and Red Bull.
On Friday, Williams announced the sale to New York-based Dorilton Capital, an investor in industrial and healthcare companies, for an undisclosed sum. The team will continue to compete under the Williams brand and retain its UK headquarters and leadership.
“As a family we have always put our team first,” said Ms Williams, the team’s deputy team principal, in a statement.
“Making the team successful again and protecting our people has been at the heart of this process from start. This may be the end of an era for Williams as a family-owned team, but we know it is in good hands.”
Matthew Savage, Dorilton Capital chairman, and Darren Fultz, chief executive, co-founded their investment firm in 2009 after previously working as executives at Rothschild, the investment bank.
Mr Savage said its “patient investment style” would “allow the [Williams] team to focus on its objective of returning to the front of the grid”.
The sale comes just a day after Formula One agreed a crucial pact, called the “Concorde Agreement”, which ties teams to the competition for the next five years.
F1 chief executive Chase Carey said the deal would distribute a $1bn pot derived from television rights, promoter fees and advertising revenues, more fairly among the teams ensuring more even competition.
However, Williams has decided it needs further financial support to return to its historic position as one of the most successful outfits in F1.
The coronavirus pandemic, which stopped the season before it could start, has exacerbated the strain at Williams Grand Prix Holdings, which posted a £17m loss in 2019, down from an £8m profit a year before.
The group won 16 drivers’ and constructors’ championships in the 20 years to 1997 but no top title since, and has finished last on the grid for two consecutive seasons.
Revenues fell to £95.4m last year, the first year turnover has dropped below £100m since 2014. The Frankfurt-listed company is worth roughly half the price of its initial public offering in 2011, when it was valued at €243m.