Investindustrial acquires majority stake in UK sports car maker
INVESTINDUSTRIAL HAS announced the acquisition of a majority stake in Morgan Motor Company Ltd, the 110-year-old British sports cars manufacturer.
The terms of the transaction were not disclosed, and it is expected to complete in April 2019.
The Morgan family will continue to act as “stewards” for the brand and retain a minority shareholding. The management team and all employees will have a share of the business.
The investment in Morgan is being made by a separate fund from Investindustrial V L.P.C.
Founded in 1909, Morgan hand-builds premium sports cars with a classic design in its factory in Malvern, which is visited by more than 30,000 enthusiasts each year.
With revenues of £33.8m and net profit of £3.2m in 2018, the company sells around 700 cars per year.
In a statement, InvestIndustrial said: “As part of the transaction, and as a sign of its long-term faith in the company and the wider British automotive sector, Investindustrial will support Morgan to accelerate new product development.”
Dominic Riley, the chairman of the Morgan Motor Company, commented: “The past two years have been the most successful in our company’s 110-year history.
“However, to really fulfil Morgan’s full potential and secure our long-term future, both the family and management team, felt it was essential to bring in a strategic partner.
“A partner that shares our vision for Morgan and has the expertise, financial resources and track record of success in the automotive world, to make it happen. That partner is Investindustrial.”
Andrea C. Bonomi, Investindustrial’s chairman of the industrial advisory board, said: “Morgan is one of the most famous names in the automotive world.
“Morgan’s handmade British sports cars are true icons of the industry.
“We have followed the company and seen its progress for some time and see significant potential for Morgan to develop internationally whilst retaining its hand-built heritage, which is at the heart of the Morgan Motor Company.
“We share with the Morgan family the belief that British engineering and brands are unique and have an important place in the world.”
Steve Morris, CEO, Morgan Motor Company, added: “The future is bright for Morgan.”