RedBird Capital Partners and Otro Capital are leading an investor group buying 24% of Renault SA’s Formula 1 team Alpine in a deal valuing the business at $900 million, as the French carmaker moves ahead with ambitious plans for its sports car unit.
(Bloomberg) — RedBird Capital Partners and Otro Capital are leading an investor group buying 24% of Renault SA’s Formula 1 team Alpine in a deal valuing the business at $900 million, as the French carmaker moves ahead with ambitious plans for its sports car unit.
RedBird, Otro Capital and Maximum Effort Investments will spend €200 million ($218 million) on the stake in Alpine Racing Ltd., the entity in charge of Alpine’s Formula 1 activities based in Enstone, UK, Renault said Monday. Bloomberg reported the talks with RedBird and other potential partners on June 22.
Alpine Racing SAS, the entity manufacturing F1 engines in Viry-Châtillon, France, is not part of the transaction and will remain 100% owned by Renault. Alpine is hosting an event in Enstone Monday to give more details on the investment and the product lineup to come. It reaffirmed its target to reach €8 billion in revenue in 2030 and break even in 2026.
Renault Chief Executive Officer Luca de Meo is seeking to raise the brand’s profile in his push to expand the sports car business and move toward electrification, and the Formula 1 efforts are a key plank of his strategy. After rebranding Renault’s Formula 1 team as Alpine, de Meo is now developing a full line of models to follow, with the brand, best known for its A110 sports coupé, set to become fully electric as of 2026.
Read more: Renault Leans Toward Making Alpine On Its Own, Not With Lotus
The deal will allow Alpine to gain a seasoned investor group. RedBird, which manages $8.6 billion of capital across sectors including sports, consumer and financial services, led a €1.2 billion takeover of AC Milan last year and also owns the French soccer team Toulouse FC. Alec Scheiner, co-founder and partner of Otro Capital, will join Alpine’s board of directors.
Investors are increasingly being attracted to Formula 1, a sport whose popularity boomed in recent years. Under the deal, the group will help Alpine grow in areas such as media, sponsorship, ticketing, hospitality, commercial rights management, licensing and merchandising strategies.
Read more: Renault’s Alpine Seeking Women Drivers for its Formula 1 Team
The Alpine team finished fourth in the Formula 1 standings last season, helping boost the brand’s visibility and sales. While driver Esteban Ocon came in third at the prestigious Monaco Grand Prix last month, the start to this year’s Formula 1 championship has been otherwise difficult. The team is currently fifth in constructor standings, behind Red Bull Racing, Mercedes, Aston Martin and Ferrari.
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