News: Marussia invests in Virgin Racing

Russian company Marussia Motors has announced that it has acquired a significant shareholding in the Rotherham-based Formula One team, Virgin Racing in a deal brokered by private equity firm LDC.

Marussia Motors is the manufacturer of the first Russian supercar and has been a partner of Virgin Racing since the F1 Team was launched in December 2009. From the 2011 season the team will be known as Marussia Virgin Racing. The team will compete in the FIA Formula One World Championship by that name including racing at the new venue in Sochi, Russia in 2014.

The team was formed when Rotherham's Manor Grand Prix in Dinnington teamed up with Sir Richard Branson's Virgin brand. LDC, a subsidiary of the Lloyds Banking Group added Manor to their investment portfolio in 2009.

The transaction, led by head of LDC Director Carl Wormald and supported by investment director Jonathan Bell, provides an attractive return on LDC's initial investment and will see them retain a shareholding alongside the existing Virgin Racing management team.

The decision of the Russian company to be involved more deeply in the life of the racing team was welcomed by the Management Team..

Graeme Lowdon, Chief Executive of Virgin Racing said that the investment by Marussia Motors will enable the team to plan more ambitiously for the longer term.

It has been announced that there will be no significant change to the team's organisational structure as it prepares for its second season in F1.

The team also reassured fans via Twitter that the team will remain based in Dinnington.

Carl Wormald, Director at LDC, said the partnership with Marussia was in line with the long term strategy to establish Virgin Racing as a competitive racing team and a successful commercial business.

He said: "This is excellent news for all stakeholders in Virgin Racing. The team has made tremendous progress over the past twelve months and this is testimony to the commitment and skill of the Virgin Racing personnel.

"LDC is delighted to remain a significant shareholder and is looking forward to working with Marussia to support the future development of the team."

Marussia Motors is also confident of success of the Company. Marussia's president and chief executive Nikolai Fomenko said: "This is the realisation of a dream for us.

"While manufacturing, launching and marketing the Marussia B1, B2 and other concepts in Europe, we will have a Formula One team to promote these activities and demonstrate to the world that a new car manufacturer has arrived from Russia with truly international ambitions."

Virgin Racing Team Principal, John Booth added: "I am extremely proud of what we have achieved with Virgin Racing in what is really only 16 months since the team was founded. I am delighted that the significant efforts of the team have been recognised and have attracted the commitment of Marussia Motors, which will enable us to move forward and deliver against our five year target for success."

Virgin Racing has also announced a new long term partnership with International Direct Selling Company, QNet.

Virgin Racing website
Marussia website

Images: marussiamotors.ru