Cambria Automobiles faces possible management buy-out

Cambria Automobiles faces possible management buy-out

CEO and Founder Mark Lavery, alongside finance director, James Mullin and Managing director, Tim Duckers (together the ‘Management Team’), are considering a management buy-out of luxury car retailer, Cambria Automobiles plc.

On 22 March 2021, Cambria Automobiles announced that it has consented to the Management Team exploring the possible acquisition of the entire share capital not already held by them, at a price of 80 pence per share. The offer represents a 21% premium to Cambria Automobile’s share price as of 19 March 2021 (being the last business day before the announcement) and would value the AIM-listed company at £80 million. News of the possible offer saw the company’s shares close 15% higher.

Lavery also represents Cambria Automobiles' largest shareholder, with a 40% stake in the company.

The news comes after Cambria Automobiles announced a 14% drop in revenue in its trading update on 3 March 2021. The group has cited uncertainty surrounding COVID-19 and continuing lockdown restrictions for the difficult trading environment, however, confirmed that trading performance for the first five months of the financial year has been ahead of the same period in 2019/2020. Cambria Automobiles credited this to ‘COVID-related cost actions taken by the Group in 2019/20 financial year, combines with the Board’s utilisation of Government support packages including the coronavirus Job Retention Scheme grant and business relief rates’. Cambria Automobiles also announced in its annual report that a ‘significant reduction in the number of associates through a redundancy programme’, as a result of the impact of the pandemic.

The Management Team has until 19 April 2021 to confirm whether it will be making a firm offer for the company.

Market Tracker will continue to monitor this transaction as it develops. 

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