NASCAR team takes shape for 2022 with $19.1 million purchase
Richard Petty sets at the top of the NASCAR wins list with 200. In 2000, he formed Richard Petty Motorsports and the team has collected 5 wins since with their last coming in 2014.
The team currently owns two charters in the NASCAR Cup Series. One of which was leased to Rick Ware Racing for the 2021 season. Erik Jones piloted the other #43 machine out of the RPM stable.
GMS Racing opened in 2011. They’ve been active in the NASCAR Truck Series and NASCAR Xfinity Series. They’re set for a new venture into the highest level of stock car racing.
Months ago, GMS Racing announced they would compete full-time in the NASCAR Cup Series with Ty Dillon as their driver. However, until yesterday, a charter was not secured for the new NASCAR team.
On Wednesday, it was announced that GMS Racing has purchased a controlling interest in Richard Petty Motorsports. With the agreement, two charters have been aquired.
The #43 will continue to operate full-time. Additionally, Ty Dillon will use the charter previously leased by Petty to Ware and will field a second effort from Petty via the #94.
Per a public filing, GMS paid $19.1 million for their stake in Richard Petty Motorsports.
Maury Gallagher of Richard Petty Motorsports stated:
“Richard Petty Motorsports has agreed to sell a majority interest to Maury Gallagher, owner of GMS Racing. Two charters are included in the agreement and will be operated during the 2022 NASCAR Cup Series season. This is a special moment for both organizations, as the Next Gen car allows a new chapter to be written.”
GMS Racing statement:
“This deal will see the #43 continue to run full-time with a charter. The second charter included has been used by the #51 of Rick Ware Racing. Next season it will be used by the #94 of Ty Dillon.”
$19.1 million purchase
Medallion Financial released the following details in a public release:
“On December 1, 2021 RPAC Racing, LLC, a subsidiary of Medallion Financial Corp, entered into a Subscription Agreement for Preferred Units of RPAC Racing, LLC by and among Warp Speedway, LLC (Buyer).”
“Pursuant to the Subscription Agreement, on December 1, 2021, RPAC sold 9,999 preferred units in RPAC to Buyer in exchange for a cash capital contribution in the amount of $19,100,000, which (net of fees and other transaction costs) was paid to the Company and certain of its subsidiaries in full satisfaction of the outstanding RPAC intercompany indebtedness.”
“In connection therewith, Medallion transferred all its membership interests in RPAC to Buyer.”
“This transaction results in a complete divestiture of RPAC by the Company, removes $26 million of intangible assets from the Company’s balance sheet and increases the Company’s tangible book value by over $1 per share.”