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Italian firm takes major stake in Morgan Car Company

Published 05 March 2019

British sports car maker Morgan has sold a majority share in its business to an Italian venture capitalist firm. The news means the 110-year old Malvern-based company will no longer be family-owned – a position it’s held since it was founded in 1910.

It comes after Morgan settled a long-running dispute with ex-director Charles Morgan, who was the grandson of the founder and a 25% shareholder, in 2017. Although the Worcestershire-based manufacturer remains tight-lipped over the details of the deal, it says the Morgan family will continue to act as ‘stewards for the brand’. The changes mean the management team and all employees will become shareholders in the business.

The investment in Morgan comes from Italian firm Investindustrial V L.P. (whose investment subsidiaries hold a stake in Aston Martin Lagonda Global Holdings PLC).

With revenues of £33.8 million and net profit of £3.2 million in 2018, the Morgan sells around 700 cars per year including its unique 3 Wheeler.

The hand-built cars are manufactured using three core elements: ash, aluminium and leather. Morgan has a loyal and active owners’ community with more than 5000 members and 50 clubs globally. It is thought 30,000 enthusiasts visit the factory every year.

The Italian investment means Morgan will be able to launch more new cars. It has already unveiled the Plus Six at this year’s Geneva motor show.

Jill Price, Peter Morgan’s daughter and the longest serving Morgan family director said, ‘Having very carefully considered all options for the future success of Morgan, the family concluded that this new ownership structure and Mr Bonomi 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 stake in the business.’

Comments

Peter McGuire    on 10 March 2019

Employees will have to learn to gesticulate as they hand build the cars.

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