A majority stake has been acquired in an iconic 110-year-old British sports car manufacturer.
Investindustrial has acquired the interest in Morgan Motor Company for an undisclosed fee. The deal is expected to complete in April.
The Morgan family will continue to act as stewards for the brand and retain a minority shareholding while the management team and all employees will have a share of the business.
The investment has been executed without financial debt, and Morgan will have a positive net cash position upon closing of the transaction.
The move has been made by a separate fund, with a different strategy, from Investindustrial VLP whose investment subsidiaries hold a stake in Aston Martin.
Founded in 1909, Morgan Motor Company hand-builds premium sports cars with a classic design in its historic 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 2018, the company sells about 700 cars per year including a portfolio of iconic car designs and a unique three-wheeler manufactured using three core elements: ash, aluminium and leather.
As part of the transaction Investindustrial will support Morgan to accelerate new product development, after the launch of the new Plus Six at the Geneva motor show today – the first to adopt the company’s new CX-Generation architecture, increase global distribution and broaden customers’ experience with unique events.
Dominic Riley, chairman at Morgan Motor Company, said: “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.”
Jill Price, Peter Morgan’s daughter and longest serving Morgan family director, added: “Having very carefully considered all options for the future success of Morgan, the family concluded that this new ownership structure and Investindustrial, have the pedigree and resources to secure the long-term future of Morgan.
“It was important for the family to retain a shareholding, and we are delighted that our loyal management team and workforce will now also have a share in the business going forward.”
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, chief executive at Morgan Motor Company, said: “The future is bright for Morgan. We are coming off the back of two record years.
“We have an all-new vehicle architecture and powertrain, and have just launched the most dynamically capable Morgan yet, the exciting new Plus Six at the Geneva International Motor Show.
“Now we have the best possible owner and partner to take the business to the next level and develop Morgan’s global potential.”