Archer Complete 60pc V8 Supercars Takeover, Valuing at USD316m

Private equity firm Archer Capital has agreed to buy a controlling stake in the Australian V8 Supercars auto-racing championship in a transaction that values the series at about US$316m.

A 60 per cent stake in the championship will now be owned by Australian Motor Racing Partners Pty Ltd., health funded by Sydney-based Archer, with the racing teams and management holding the remaining 40 per cent, V8 Supercars said in a statement.

Australian Motor Racing Partners Director Andrew Gray claimed that Archer Capital will take on “a moderate amount of debt” to become the majority owner of Australian motor sports’ premier series. Sports and Entertainment Ltd. had held a 25 per cent share in the sport and the teams the other 75 per cent.

Gray said at a news conference in Sydney, broadcast on the V8 Supercars website: “We are long-term investors and we’re patient investors. The business has grown exponentially over the last decade. There’s a lot of growth to come.”

V8 Supercars Chairman Tony Cochrane will continue in the role and oversee the day-to-day management of the sport, which takes in races in Australia, Abu Dhabi and New Zealand and attracted an average of 126,000 trackside spectators per race last season.

Cochrane said the new ownership structure will enable V8 Supercars to proceed with plans to add two to three new events at international venues from 2013, adding: “This gives us a strong foundation to move on. There will be more racing out of this decision today.”