Archer Capital has started selling its stake in Supercars
Several high profile names have been linked to a possible acquisition of a controlling stake in Supercars by private equity firm Archer Capital.
At the Darwin Triple Crown last weekend, rumors circulated in the paddock of Supercars that several consortia had expressed an interest in buying the company.
Two names that keep popping up are those of Norwell Motorplex owner Paul Morris and Boost Mobile owner Peter Adderton as part of a consortium.
Earlier this year, Adderton Speedcafe.com announced that it was investigating the supercars purchase and “sent some signals” to Archer Capital.
Adderton said at the time he wouldn’t buy the business unless the basic structure of supercars was changed and control was taken out of the hands of the teams.
Speedcafe.com understands that an offer for business, not necessarily Morris and Adderton’s, depends on a radical transformation of supercars.
That could mean that the teams that own 35 percent of the shares in supercars are also bought out of business.
Several other groups have been linked to the sale, including a potential consortium led by Mark Skaife.
It’s not the first time that an offer from the former owner of the Holden Racing Team and the Supercars presenter has appeared as an option.
Another name floating around was that of former Australian GT regular and real estate developer Rod Salmon, who recently confirmed his interest in the deal to Speedcafe.com.
It is said that up to five groups are vying for the deal after Archer Capital began selling in earnest earlier this year.
In any case, it looks like Archer Capital is likely to lose if a sale takes place.
The private equity firm bought its 65 percent stake in 2011 for $ 180 million.
The value of supercars is said to have dropped significantly since then.
A source said the bids could now be anywhere from $ 30 million to $ 60 million.
Miles Advisory, owned and operated by Porsche Payce Carrera Cup Australia driver Tim Miles, has been tasked with selling the business.
Ironically, it was Miles who brokered the first deal for Archer Capital to buy his stake in supercars.
Archer Capital has long tried to outsource supercars from its business portfolio.
Ahead of the recent surge of interest, it is believed that the Australian Racing Group – which includes series like Supercheap Auto TCR Australia and S5000 – has been trying to buy supercars.
Next year will be a pivotal year for Supercars in terms of the launch of its highly anticipated Gen3 project, with new Mustangs and Camaros slated to hit the track at Sydney Motorsport Park in August 2022.
Many other keynote elements have been secured for the coming years, namely a transfer agreement with Fox Sports and the Seven Network until 2025 and a naming partnership with Repco, also in a five-year agreement until 2025.
The next round of the Repco Supercars Championship 2021 will take place July 9-11 in Townsville.
