The Nürburgring was sold for 100 million euros

This process is a new illustration that a sale is never final until the contract is signed. Indeed, in recent weeks, many sources indicated that the American investment fund H.I.G. Capital had managed to gain the upper hand in the negotiations.

The sale of the “Green Hell” also served Bernie Ecclestone’s communication strategy during his legal battles with the German justice system: while the Munich prosecutor’s office officially charged the F1 supremo, he announced his candidacy for the purchase of the German circuit, for an amount of 50 million dollars, to ensure the event’s presence in the F1 calendar…

It is therefore ultimately the automotive supplier Capricorn that succeeded in winning the deal. This acquisition is directly at the heart of the company’s strategy. Indeed, it specializes in supplying parts and technical solutions both for competition and for high-end and sports vehicles marketed for road use. It thus intends to make the circuit a technological cluster dedicated to the automotive industry, in order to further strengthen the presence of car manufacturers.

The prospect of creating highly skilled jobs in the region is what tipped the balance in favor of the industrial group that has been present there since 2012. Jens Lieser, the lawyer in charge of the process, explained this decision: « The creditors’ committee had two excellent offers before it and ultimately chose the one that offered the highest purchase price and the best prospects for the region. »

If the firm owned by Robertino Wild has committed up to 100 million euros, 25 million will be dedicated to investments in the site’s infrastructure as well as for the development of the automobile cluster: « As an enthusiastic fan of motorsports, the Nürburgring has always been a passion for me. We have identified the enormous potential of this unique racetrack and want to optimize the current structures but above all realize the vision of the automotive technical cluster. » He is joined in these remarks by Adam Osieka, the CEO of the new entity that owns the circuit: « The responsibilities towards local people and ensuring the interests of the region are at the heart of sustainable development. They are the foundations of new economic prospects for the Nürburgring. If the Nürburgring does well, then the people of the region will do well too. »

As part of the essential restructurings to ensure the site’s future, the new owners have decided to permanently shut down the Ring°Racer, the roller coaster installed in the amusement park in close proximity to the circuit, which is the source of a large portion of the company’s financial difficulties. They will also dispense with the Ring°Card. This magnetic card was a means of payment across all the Nürburgring’s infrastructures but incurred significant operational costs since the card was free for users but required dedicated staff presence.

On the other hand, it has been specified that the entire 2014 competition calendar will be respected. The presence of the German circuit is thus assured for this season. It remains to be seen how the negotiations with the owners of Hockenheim will proceed for the continuation of the alternating arrangement between the two circuits for hosting the German Grand Prix.

However, Capricorn will not take official possession of the infrastructure until January 1, 2015. Therefore, the current structure will continue to manage the circuit’s daily operations. Similarly, Capricorn has reserved the right to withdraw due to the investigation conducted by the European Union competition authorities, who have launched an investigation into the public guarantee granted for a €330 million loan in August 2012. If the European authorities were to demand a repayment of this aid, the industrial group would then have the right to reverse its decision to buy the Nürburgring.

With the participation of www.Racingbusiness.fr