The Stronach family assets will be separated with father and daughter focusing on their own interests
A bitter multi-year feud involving one of Canada’s wealthiest families has reached a settlement.
The spat between Frank Stronach, founder of the Magna International autoparts business, and his daughter Belinda, was escalated in 2018 when Frank and his wife Elfriede sued Belinda and two grandchildrenfor $520 million, alleging mismanagement of the family fortune.
At the time, Stronach senior said the action was taken as “a last resort” after two years of trying to reach agreement.
Belinda Stronach denied any wrongdoing, saying at the time the case was filed in the Ontario Superior Court that while she and her children “love my father, his allegations are untrue and we will be responding formally to the statement of claim in the normal course of the court process.”
In a statement Thursday, The Stronach Group said that the litigation has been dismissed by the court as a result of the agreement between the parties.
None of the parties has any current involvement in the Magna International business.
What’s been agreed?
Frank and Elfriede Stronach will, through their own personal entity, assume full leadership, ownership and control of the Thoroughbred stallion and breeding business, including Stronach Stables.
These assets include the operations of the Adena brand in Florida, certain Ontario farmland and certain agricultural assets in Florida, M Meats, Fort McCoy Ranch by Adena Farms, Adena Golf & Country Club (Ocala) and all European assets.
The couple will have no interest in The Stronach Group.
"I am glad that our disagreements have been resolved amongst ourselves and have utmost confidence in The Stronach Group's Thoroughbred racing and gaming businesses, which will remain under Belinda's management,” Frank Stronach commented.
Belinda Stronach will remain as chairman and president of The Stronach Group and will have full control of the company’s assets which include Thoroughbred racing, gaming, real estate and related assets.
The company launched a consumer-facing brand 1/ST earlier this year.
"I am pleased that my father will be able to focus on an agricultural business and related projects that are his passion,” added Belinda Stronach. “The settlement will allow The Stronach Group to continue building successful companies with quality jobs that contribute to the community."
