Morgan sells off majority of company

March 5, 2019

Investindustrial has today announced the acquisition of a majority stake in Morgan Motor Company Ltd, the iconic 110-year old British sports cars manufacturer.

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 retains a minority shareholding. Meanwhile, for the first time in its history, the management team and all employees will become shareholders in the business.

The investment is executed without financial debt, and Morgan will have a positive net cash position upon closing of the transaction. The investment in Morgan is made by a separate fund (with a different strategy) from Investindustrial V L.P. (whose investment subsidiaries hold a stake in Aston Martin Lagonda Global Holdings PLC).

Founded in 1909, Morgan continues to this day to hand-build premium sports cars with a classic design in its historic factory in Malvern, UK, which is visited by more than 30,000 enthusiasts each year. With revenues of £33.8 million and net profit of £3.2 million in 2018, the company sells around 700 cars per year including a portfolio of iconic car designs and a unique 3 Wheeler manufactured using three core elements: ash, aluminium and leather.

The Morgan brand is synonymous of quintessential British craftmanship, elegance, performance and design. Morgan has a loyal and active owners’ community with more than 5,000 members and 50 clubs globally.

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, after the launch today of the new Plus Six at the Geneva motor show, the first to adopt the company’s new CX-Generation architecture, increase global distribution and broaden customers’ experience with unique events, enabling Morgan to fulfil its global potential as an iconic maker of hand-built British sports cars.

In supporting the company, Investindustrial will leverage its vast experience and track record in the automotive industry, developed through a number of successful investments over the last 30 years, such as Aston Martin and Ducati.

Morgan will continue to focus on its niche classic segment within the automotive sector, with bespoke manufacturing, hand-built products, and the use of ash remaining central to its strategy. Investindustrial will work closely with current management and the wider Morgan family to make sure that future development of the business will be respectful of and remain true to the company’s unique heritage.

Dominic Riley, Chairman, 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.”

Latest News

Super CUPRA takes to the streets

The CUPRA Formentor has made its dynamic debut around the stunning roads of
[...]

Mazda3 secures top marks for safety

The All-New 2019 Mazda3 has been awarded the maximum five-star rating by Euro
[...]

New Mercedes X-Class is in its Element

Following on from the success of the Storm Edition, Mercedes-Benz Vans UK Ltd
[...]

Prices announced for the Tucson N line

Hyundai Motor UK has announced the pricing and specification of the Tucson N
[...]

Vauxhall’s new electric Grandland X

Vauxhall is continuing its journey towards electrification with the new Grandland X all-wheel
[...]

Introducing MG’s first all-electric car

MG Motor UK’s first-ever fully electric car, the ZS EV, will be shown
[...]

New upgrades for Hyundai Ioniq range

Hyundai has announced a series of upgrades for the Ioniq – the first
[...]

Ice record for Jeep Grand Cherokee

At the annual Speed Days of the Baikal Ice Motor Sports Festival 2019
[...]

Feature-packed Mercedes GLS on sale

The new Mercedes-Benz GLS is available to order with prices starting from £73,995
[...]

New Chequered Flag E-Pace launched

Jaguar has revealed a new Chequered Flag special edition for the E-PACE. Unique,
[...]

Final testing for new Defender model

Land Rover has announced plans for the new Defender to complete a final
[...]

Motorpoint’s free summer car check

Motorpoint is helping motorists get ready for summer with a free car check. The
[...]

Evoque secures five star safety rating

The new Range Rover Evoque has been awarded a maximum five-star Euro NCAP
[...]

Ford launches limited edition Fiesta ST

Ford has introduced a special edition of the Fiesta ST, one year on
[...]

Check your number plates or face a fine

Road safety and breakdown organisation GEM Motoring Assist is urging drivers to ensure
[...]

VW tests autonomous cars in Hamburg

Volkswagen Group Research is testing automated vehicles in urban traffic in Hamburg. This
[...]