ELTA subject of management buyout
ELTA Automotive Ltd has recently been the subject of a management buyout (MBO) with the goal of “making it fit…for its next 25 years”.
This latest development, which was formally agreed on 11 September, sees managing director Ian Hallam, who has worked with ELTA since the company was incorporated 25 years ago, become the company’s co-owner, alongside long-term European partner Luxline spol. s r.o – led by Vladimír Palacka. Ian Hallam and Luxline become equal shareholders of a new holding company, ELTA Investments replacing the previous holding company, Claverdon Fields.
“During a year of notable milestones, which has included our 25th anniversary, the launch of the PRO brands in the UK and now into the European market, the MBO is the highlight, not just from a personal perspective, but for what it brings to the overall package and what the company can deliver to its customers across all regions,” Ian Hallam explains.
“We are collectively very proud of what the company has achieved so far, but in order to continue our upward trajectory over the next 25 years, there needed to be a fundamental change and that was only possible through a negotiated MBO, which although respectful of the successes of the past, is completely new and therefore able to move in the direction we believe is necessary.
“Although the PRO brand addition will provide many new opportunities in new territories throughout the world for ELTA, our relationship with the iconic Lucas brand remains extremely important and will be a cornerstone of our European offering.
New Lucas licence agreement
“However, as would be expected, a change of ownership inevitably requires a new licence agreement with the brand owners, which is why we are particularly delighted to be able to announce that this has been secured and on a mutually positive basis for both parties.
“As a result, we are thrilled to have secured a new UK, Eire and continental European licence for automotive bulbs, wiper blades and switchgear.”
In order to facilitate this superb opportunity, ELTA will release the UK and Eire licences for window regulators, mirrors and engine management to existing European licensees creating a simpler structure for Lucas customers throughout Europe.
“By ensuring the continuity of our product specialisms, with the added benefit of a significantly wider territory, allied to the ability to control our own destiny, not only with our own brands, but through a new corporate mind-set, we are on the cusp of great things.
“We can therefore, look to the future with confidence and optimism as it will allow us to continue to grow and launch into new markets, introduce more products and consequently make the ELTA proposition an even more powerful and effective offering for the changing face of the aftermarket and in so doing, ensure success for the next 25 years,” concluded Hallam.