What does the new ownership mean for Williams F1
As news stories go this is a really big story for F1. Williams Grand Prix Engineering Limited (WGPE) is a listed company on the German Stock Exchange, so a number of documents have been released to comply with their legal obligations in Germany. One of the most impotent statements for me is this "Sir Frank, who holds 52% of the shares, has given his “irrevocable support” to the transaction – with the Williams family set to no longer have a shareholding" (so Frank and family no longer hold any shares in the company, I wonder how long a Williams family member will be on the board in a place of influence).
Who owns Williams now
Over the last three months, Williams have met with a selection of potential investors as part of a formal sale process and subsequently reviewed submissions of interest. They opted to move forward with American private investment firm Dorilton Capital, whose portfolio includes companies in the industrial services, healthcare services and speciality manufacturing sectors. This is a complete buy-out. The sale is for Williams Grand Prix Engineering Limited (WGPE), which consists of the F1 business (including their impressive heritage car collection and high-end headquarters at Grove) their minority stake in Williams Advanced Engineering, and all other trading assets and liabilities. According to documents released to the Stock Market, the “enterprise value” of the company is “€152 million and the net cash proceeds that have been received by the Company for the shares of WGPE, after repayment of all third party indebtedness and transaction expenses, are €112 million”.
Will the Williams name stay in F1
Yes, the iconic Williams name will remain in Formula 1, while the chassis designation FW will stay too. It is believed the new investors are committed to retaining the culture of the team and see the value of maintaining the brand which Sir Frank and his colleagues have spent more than 40 years building, (the name still holds a lot of value in F1, but for how long that will remain the case, who knows).
Will they remain a UK team
The new owners may be American, but they say they have no plans to move the team away from their long-held base at Grove in Oxfordshire. "We also recognise the world class facilities at Grove and confirm that there are no plans to relocate,” said Dorilton Chairman Matthew Savage.
Who will run the team
Dorilton use the term “partnership” when discussing their acquisitions, saying they “work actively with existing management teams recognising that long-term business success is the result of a team effort”. They also like “continuity”, adding “we partner with companies that are led by strong management teams and have a successful history and culture. We firmly believe in our companies continuing with the elements that have made them successful”. These are still very early days, with a lot to be worked out, but their statements above suggest that in the short-term, very little is set to change at the team, currently run by Claire. Long-term, though, it remains unclear, (I bet changes will come soon, with Covid I don;t expact anything to soon, their statement says "work actively with existing management teams recognising that long-term business success is the result of a team effort" but what success? Looking back over 40 years yes there has been success, but not over the last few years. I don't believe recently there has been "strong management" so I expect changes for the start of 2021, because of the new rules coming in 2022 I'd expect some continuity but after that I think Williams will look very different).
Will the team now have more money for development
In short, yes. But there’s some way to go before they get the chequebook out. As you’d expect, there is now a lot of paperwork and fine details to work through, but this moment does mark a significant shift in the direction of the team and a brand new chapter in their history, Dorilton will now work with Williams to carry out a detailed review of the business to “determine in which areas new investment should be directed”.
Crucially, the investment firm say they practise “patience” with their acquisitions and “prefer to create value over the longer term by reinvesting cash flow”. This is exactly what Williams need. They have a solid foundation, but need fresh and consistent investment in which to really challenge their rivals at the sharp end of the field. That investment can run across their facility, making sure that the departments which need to react to the new rules are well resourced and staffed, giving them a basis on which to add more development. With this deal being done in good time ahead of the incoming budget cap for 2021 and new technical regulations for 2022, Williams have a real opportunity now to capitalise and make a step forward, away from the rear of the grid.
Recent financial history
Reuters reported on 20 November 2009 that Williams and Patrick Head had sold a minority stake in the team to an investment company led by Austrian Toto Wolff who said that it was purely a commercial decision.
In February 2011, Williams F1 announced plans to raise capital through an initial public offering (IPO) on the Frankfurt Stock Exchange (FWB) in March 2011, with Sir Frank Williams remaining the majority shareholder and team principal after the IPO.
As of December 2017, ownership is as follows: Frank Williams (51.3%); Brad Hollinger (11.7%); Patrick Head (9.3%); 24.1% on the public market place; and 3.6% is held by the trust fund employee.
In May 2020, Williams was put up for sale after posting a £13 million loss in the previous year.
On 21 August 2020, Williams was acquired by Dorilton Capital. They are still due to race under the Williams name.
Edited to add; this seems like a very good deal and price for Dorilton when you look at what they got for the money. They have brought the F1 business (including their impressive heritage car collection and high-end headquarters at Grove) plus their minority stake in Williams Advanced Engineering, and all other trading assets for a net price of €112 million (or have I missed something?) Lawrence stroll and his pals paid £105 million for just Force India racing team (£90 million plus assumption of £15 million in debt).