Porsche is selling its Bugatti Rimac stake and walking away from Rimac

Porsche AG Supercar brand Bugatti agreed to sell its 45% stake in Rimac, completely exiting the joint venture that houses the iconic brand.

Porsche and Croatian sports car manufacturer Rimac Group founded Bugatti Rimac in 2021; Rimac held a 55% majority stake, and Porsche held the remaining 45%. It will sell its shares to a consortium led by New York-based venture capital firm HOF Capital, with its largest investor being BlueFive Capital.

The deal comes as the auto industry grapples with increasing pressure to consolidate due to slowing growth, rising costs and increasing margin pressure from tariffs and geopolitical disruptions. The value of automotive and mobility deals rebounded last year to reach: More than $35 billion According to Bain & Company, as of the third quarter.

Under the terms of the deal, Porsche will also divest its 20.6% stake in Rimac Group, meaning it will completely exit its investment in the Croatian electric hypercar maker.

Upon completion of the transaction, Rimac Group will take full operational control of Bugatti Rimac and form a strategic partnership with BlueFive and HOF Capital to support the growth of the brand.

Shares listed in Frankfurt porsche It fell 1.6% in early trading Friday.

HOF Capital was co-founded by a member of the Egyptian billionaire Sawiris family. BlueFive Capital is a private equity firm led by Hazem Ben-Gacem, a former executive at alternative investment firm Investcorp.

Financial terms of the transaction were not disclosed.

“As an early-stage investor in the Rimac Group, Porsche has made a significant contribution to the transformation of Rimac Technology into a well-established Tier 1 automotive technology company,” said Michael Leiters, CEO of Porsche AG. “With the sale of our shares, we are focusing Porsche on its core business.”

“With solid foundations [Porsche’s] “Support has been provided, we now have a structure that allows us to implement our long-term vision even faster,” said Bugatti Rimac CEO Mate Rimac.

Rimac founder Mate Rimac expressed interest in buying Porsche’s shares last year and made a preliminary offer valuing the joint venture at just over 1 billion euros ($1.1 billion). Bloomberg reportedQuoting people who know the subject.

“BlueFive Capital approaches this opportunity as more than a simple financial transaction, and we look forward to working with the entire Bugatti Rimac team to preserve this legacy for future generations,” said Hazem Ben-Gacem, Founder and Chief Executive Officer of BlueFive Capital.