Cambria CEO Mark Lavery aims for growth after securing MBO deal

Cambria Automobiles CEO Mark Lavery said he was looking forward to “capitalizing on the growth opportunities ahead” after agreeing to the terms of the group’s management buy-out (MBO).

In a statement released via the London Stock Exchange today (June 10), the AM100 PLC revealed that the group will revert to private ownership pending shareholder approval at a court meeting and a positive vote at an upcoming general meeting.

Shareholders will receive 80 pence per share in cash as part of a transaction that values ​​Cambria’s entire issued share capital at around £ 80million.

The valuation represents a premium of around 21.2% on the closing share price of 66p on March 19, which was the last business day before the start of the offer period and of 36.8% on the 58.5p volume-weighted average closing price in the six months through March 19.

Lavery’s offer for the company was approved by an independent committee of Cambria’s board of directors advised by Rothschild & Co.

Commenting on the offer, Lavery said, “I am pleased that the independent committee unanimously recommended the cash offer.

“The cash offer represents an opportunity for Cambria shareholders to make their cash investment at a significant premium over Cambria’s historical share price when there has been a low level of commercial liquidity or, when there has been a low level of commercial liquidity. ‘a shareholder might be prepared to do so, keeping a stake in the alternative offer.

“I am proud of the excellent work the team has done over the past 11 years since Cambria’s IPO to significantly transform the business, but these achievements have not been reflected in the valuation or perception of Cambria by the stock market.

“I am aware of a time of rapid change for the industry and that there may be headwinds ahead, but I look forward to capitalizing on the growth opportunities ahead and creating value. for clients, employees and privately owned brand partners. “

Lavery initially launched its MBO offering for Cambria alongside CFO James Mullins and CEO Tim Duckers in March.

Mullins and Duckers then withdrew due to “technical considerations”.

Lavery’s successful offer was made under a new limited liability company called Bidco.

Philip Swatman, Chairman of Cambria and member of the independent committee that reviewed Lavery’s offer, said: “Cambria has successfully executed a strategy over the past 11 years of public ownership.

“However, while Cambria has demonstrated considerable resilience, significant business uncertainties persist in the short to medium term for a company of our relative size.

“In recommending the cash offer to Cambria shareholders, the independent committee believes it is in the best interests of all stakeholders, enabling them to realize significant and immediate value, while enabling the long-term success of the company.

“Therefore, the independent committee unanimously recommends the cash offer. “

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