Ron Dennis pushed out of McLaren entirely (2nd Update)
After 37 years at the helm of McLaren, Dennis stepped down from his role as CEO at the end of last year following an internal strife with fellow shareholders Hamad bin Isa Al Khalifa and Mansour Ojjeh.
It was announced last week that McLaren would acquire Dennis' stake in the group, valued at £275m.
To fund the acquisition, McLaren has hired JP Morgan to lead the debt offering on the capital markets with reports suggesting a successful bond issuance could reach as much as $500m with part of the proceedings possibly earmarked for a potential stock market flotation scheduled in the future.
Tapping the capital markets will no doubt be helped by a record year of growth and profits in 2016 for McLaren Automotive, the luxury car-maker division of the group.
McLaren Automotive, which announced its results last week, has grown rapidly since its inception in 2010, with sales doubling to 3,286 vehicles in 2016 and profit rising by 70 percent to 9.2 millions pounds.
The firm expects to reach sales of 4,500 vehicles by the end of 2022, with at least half equipped with hybrid powertrains
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| Ron Dennis |
06/30/17
This rumor is now 'fact' with today's announcement.
Ron Dennis CBE has reached agreement with his fellow shareholders in McLaren Automotive and the McLaren Technology Group to sell his shareholding in both companies.
Ron celebrated his 70th birthday on June 1st 2017, after 37 years at the helm of McLaren, and 51 years spent working in Formula 1 and other top-level motorsport series.
During his 37 years at McLaren, Ron led the team to 158 Grand Prix wins and 17 Formula 1 World Championships, managing some of the greatest drivers in the history of motorsport (including Niki Lauda, Alain Prost, Ayrton Senna, Mika Hakkinen and Lewis Hamilton, who all won World Championships under Ron’s management) as well as the world-renowned Le Mans 24 Hours race in 1995.
In 2004 Ron announced the launch of McLaren Applied Technologies, which focuses on applying motorsport-bred innovations and technologies so as to improve the performance and product innovation of blue-chip companies in a wide variety of industries.
In 2010 Ron oversaw the formation of McLaren Automotive, now one of the world’s leading manufacturers of high-performance sports cars.
On December 18th 1980, Ron merged Team McLaren (as it was then known) with his own company, Project Four, to form McLaren International, then valued at £3 million. Fewer than 100 people were employed by the new company at that time. In the 37 years since then, supported by the investment of TAG Group in 1984, Ron has presided over a period of remarkable and prodigious growth. The McLaren Group is today valued at £2.4 billion, had a combined turnover in 2016 of £898 million, and now employs more than 3400 people.
Ron Dennis CBE said:
“I am very pleased to have reached agreement with my fellow McLaren shareholders. It represents a fitting end to my time at McLaren, and will enable me to focus on my other interests. I have always said that my 37 years at Woking should be considered as a chapter in the McLaren book, and I wish McLaren every success as it takes the story forward.
“Perhaps my greatest satisfaction is the Formula 1 team’s outstanding racing safety record, which is a tribute to the dedication and efforts of hundreds if not thousands of talented and conscientious employees whom I have had the privilege of leading.
“I will continue to consult for various companies and work with the UK Government’s Ministry of Defense Innovation Advisory Panel in helping to improve the technology, the culture and the organizations that together safeguard the UK’s national security.
“I will also continue to run my family’s charitable foundation – Dreamchasing – which focuses on mentoring and financing children and young people from all walks of life, so that they may aspire to and succeed in whatever their career dreams may be. It was working with Lewis Hamilton, whom I took under my wing when he was just 12 years old, and who became Formula 1 World Champion with McLaren in 2008, that inspired my idea to establish Dreamchasing as a charitable foundation.
“Now that my time at McLaren has come to an end, I will be able to involve myself in a series of other programmes and activities, especially those focused on public service. I will continue to indulge my passion for supporting contemporary artists and collecting their work, but most of all I will be driving new ideas and projects forward.
“Last but far from least, I wish McLaren well, and I send my greatest thanks and best wishes to my colleagues in all corners of its business, and at every level of seniority. Truly, they are the best of the best. And, well funded to succeed and grow, and led by an ambitious management team, McLaren is ideally poised to build on the successes that I am so proud to have contributed to during my time leading such a great British group of companies."
Shaikh Mohammed bin Essa Al Khalifa (Executive Chairman and Executive Committee principal) said:
“I would like to pay tribute to Ron’s immense contribution to the McLaren success story over the past 37 years.
“As soon as he had taken over the running of the team in the late autumn of 1980, it was immediately clear that here was a man whose ambition to surpass the achievements of all previous Formula 1 team principals would not be checked. Together with Mansour Ojjeh of TAG Group, whom Ron soon introduced to McLaren and whose support has been invaluable to its success for a third of a century, Ron rewrote the record books in the 1980s and 1990s, winning Grands Prix and World Championships as a matter of apparent routine. But it was not routine: it was in fact the result of a lot of clever thinking and a huge amount of extremely hard work.
“That ethos remains at McLaren, and I am very proud now to be assuming the position of Executive Chairman, alongside Mansour, my fellow Executive Committee principal, who will continue to work with me to drive McLaren Group forward to new successes.
“There will be time in the near future to outline our plans, for the coming months and years will be an extremely exciting time in the story of McLaren. But now, today, it is appropriate that we pause to express our gratitude to Ron. So, on behalf of McLaren and all who sail in her, may I say three heartfelt words: thank you Ron."
06/29/17
Ron Dennis, the former boss of the McLaren automotive group, is to sever his decades-long ties with the company with the sale of his shareholding in a £275m deal.
Sky News rumors that Mr Dennis has agreed to offload his stakes in McLaren Technology Group, which controls the eponymous Formula One (F1) team, and McLaren Automotive Limited, the road car manufacturer.
Sources said that the deal, which will be announced on Friday morning, will value McLaren at well over £2bn – making it one Britain's most valuable private companies.
It will lead to the two arms of the company being combined under a single McLaren Group structure, sources said.
Mr Dennis, who turned 70 earlier this month, was put on gardening leave from his role of chief executive of MTG last December following an acrimonious legal battle with his fellow shareholders.
Since stepping down as MTG's chairman and chief executive, Mr Dennis has joined the Ministry of Defence's Innovation Advisory Panel, which is tasked with applying new technologies to defence activities.
He remained on the board of MTG but is now also relinquishing that role.