West Yorkshire based car dealership, Cars 2 Limited, has been sold by its Shareholders to an Employee Ownership Trust (EOT) in a Transaction advised on by Castle Square Corporate Finance and Freeths, with funding from Barclays.
With an annual turnover of more than £191 million in its last reported annual accounts and exceeding £220 million turnover in 2024, Cars 2 is a leading retail car dealership group in the West Yorkshire region, for some of the most recognisable manufacturers in the UK.
The business operates from 17 sites, retailing new and used vehicles from globally recognised manufacturers such as Hyundai, Nissan, Renault, MG, Dacia and SEAT, and represents high growth manufacturers OMODA and JAECOO. Alongside this, Cars 2 operates a prestige used car dealership, stocking premium name used cars, including McLaren, Ferrari, Bentley and Porsche.
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.
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, Allan will remain as Chief Executive, 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.
Castle Square, a mid-market specialist corporate finance boutique, based in Sheffield and Leeds, has a proven track record in corporate acquisitions, disposals, management buy-ins and buy-outs, and corporate fundraisings.
Josh Stokes said, “We are delighted to have worked with Cars 2 to deliver a great outcome for all, with the businesses continued success to be inherited by a strong and highly competent staff base.”
Legal advice was provided by Lisa Wallis and Ellie Davies, and tax advice was provided by Alex Angelides and Adrian Hackett, all from the Sheffield office of law firm Freeths.
Lisa Wallis said “It has been great to work with Allan and the team at Cars 2 alongside Castle Square to help deliver this transaction, we look forward to seeing the company continue to grow in the future”.
Freeths is a leading multi-disciplinary law firm operating nationally from 13 offices throughout England provide expert legal advice to clients across the UK and internationally.
Sam Drummond from the Barclays Retail & Wholesale team was instrumental in delivering the funding on behalf of the bank.