OCTOBER 18, 2012
Cosworth seeks buyer
After abandoning plans for an IPO (Initial Public Offering) due to adverse market conditions, F1 engine supplier Cosworth is now actively seeking a buyer.
Cosworth was bought from Ford eight years ago by US-based Gerry Forsythe and Kevin Kalkhoven and expanded its business base into the aerospace and defence industries as well as automotive consultancy and race engine supply.
The company was founded in 1958 by Mike Costin and Keith Duckworth and can boast 176 F1 victories. Current chief executive Tim Routsis told the British Times newspaper: "We have been paused for the last 18 months and the board has decided that we cannot wait any longer otherwise we risk losing momentum."
There have been suggestions that Rolls Royce and aerospace company GKN could both be interested in buying the Northampton, England-based business.
Cosworth returned to F1 to supply V8s to new teams Virgin, Lotus and HRT, as well as Williams, but subsequently lost Lotus (now Caterham) and Williams to Renault. Ideally, the company needs a commitment from three teams to commit to a turbocharged engine to the new 2014 regulations, with its future partication widely viewed as doubtful.
At Suzuka, Cosworth's Kim Spearman said of 2014: "We'd love to do it. If we can find a commercially sustainable way to provide a competitive platform for some potential customers, we'd like to do that. We are in useful negotiations and hopefully we'll find a way to be in. We've been in business for 54 years, most of it in Formula One. We've got passionate people back at Cosworth who want to stay there."