West Yorkshire based car dealership, Cars 2, has been sold by its Shareholders to an Employee Ownership Trust (EOT).
The deal was advised on by Castle Square Corporate Finance and Freeths, with funding from Barclays.
The company had a turnover of more than £191m in its last reported annual accounts and this has grown to a reported £220m in 2024.
Now employing over 250 staff, Cars 2 has expanded significantly since its incorporation in 2006, where it started as a single site used car business. The rewards of future growth will now be enjoyed by the employees, through the Employee Ownership Trust scheme.
A number of automotive businesses have revently been sold to Employee Ownership Trusts including Glyn Hopkin, Anderson Clark Motor Repairs and Helensburgh Toyota.
The EOT scheme has allowed Allan Otley, shareholder, to realise the value in his business, whilst retaining the strong brand, ethos and culture of success in Cars 2.
Following completion of the sale, Otley will remain as CEO alongside the rest of his senior management team, who will remain in post to oversee the company through the next stage of its growth journey.
Allan Otley said “It has been a pleasure working with both Castle Square and Freeths. I am thrilled to be able to pass on the success of Cars 2 to the employees, and to see them rewarded for their efforts in driving the business forward”.
Josh Stokes from the Castle Square Corporate Finance team provided advice on transaction value, structuring, manufacturer approval and the fundraising process, supported by Director Kevan Shaw.
