Archer Capital Buys V8 Supercars in $317M Deal

Australian private equity firm Archer Capital will acquire a majority stake in V8 Supercars Australia in a deal valued at more than $317 million, Reuters reported. Archer will back Australian Motor Racing Partners to take a 60% stake in V8 Supercars. Racing teams and management will hold the remaining 40% equity interest, Reuters wrote. Archer Capital has more than $2 billion under management.

(Reuters) – Australian private equity firm Archer Capital has agreed to acquire a majority stake in V8 Supercars Australia, a rare recent success for private equity firms in the local market after two deals by U.S. buyout firms were rejected.

The deal values the total V8 Supercars business at more than A$300 million ($317 million), the motorsport race group said. Terms were not disclosed.

Archer will back Australian Motor Racing Partners to take a 60 percent stake in V8 Supercars. Racing teams and management will hold the remaining 40 percent equity interest.

Archer, with about A$2 billion in funds under management, is one of Australia’s four biggest buyout firms but buyout activity has been subdued this year amid choppy financial markets.

Bigger global rivals have been frustrated in their attempts to acquire an Australian company.

Shareholders in Redflex , a maker of red-light and speed cameras, last week voted down an A$303 million offer from the Carlyle Group and investment bank Macquarie Group Ltd , while the board of services firm Spotless Group rejected an A$657 million bid from U.S. private equity firm Blackstone .

National Australia Bank and UBS provided the financing for Archer, two sources told Reuters Basis Point.

Archer partner Andrew Gray said there were tremendous opportunities to grow the motorsport and the V8 Supercars brand.

“We are highly impressed by the significant growth V8 Supercars have achieved over its history and determined to provide all the support required to develop both the V8 Supercars business and the category as a whole,” Gray said in a statement.

A report in the Australian Financial Review said Archer beat out Singapore-based sports marketing group, World Sport Group, owned by Lagardere , in the final round of a sale process, run by advisory firm Miles. (Reporting by Victoria Thieberger; additional reporting by Sharon Klyne in Sydney; Editing by Ed Davies)