Cosworth, famed British engineering house, eyes IPO
A Cosworth engine in a 1962 Lotus 22 race car during the Indianapolis in Oerlikon race demonstration at the Offene Rennbahn race track in Oerlikon, a Zurich, Switzerland suburb, in July 2016. Photo credit: REUTERS
NEW YORK — Cosworth, the British automotive engineering company famous for the engines it once made for Formula One racing teams, plans an initial public offering in New York as early as next year, Chairman Kevin Kalkhoven said on Thursday.
Cosworth has broadened its focus in recent years from manufacturing engines to providing powertrain and electronics technology. Products include car software, data analytics and sensors for autonomous and assisted driving.
The stock market offering would follow Cosworth recent sales growth from new contracts for hybrid engines and sensor technologies.
“We will be able to demonstrate our new product revenue and profit potential in real terms after the close of the first quarter in 2019,” Kalkhoven told Reuters in a telephone interview.
“It’s at that time that we will look to go public,” Kalkhoven said. The Australian bought Cosworth from Ford Motor in 2004 with Gerald Forsythe, when the two were co-owners of the Champ Car World Series.
He spoke after Northampton-based Cosworth reported a backlog of over $440 million from long-term contracts through to 2026. The company also said it was profitable last year, with record revenue of $72.5 million.
The company also said it is making a “significant investment” in its first U.S. manufacturing center in the Detroit area.
Kalkhoven said the cost of the initial installation of the manufacturing equipment will be $50 million and the center will be staffed with at least 100 scientists, engineers and researchers.
Cosworth says it has relationships with the likes of GM, Aston Martin, Honda, Haitec and Porsche.