Glyn Hopkin Group sold to its workforce of over 800 people

AM100 franchised dealer Glyn Hopkin Group has been sold to an Employee Ownership Trust (EOT).

Having opened its first car dealership back in 1993, the £550 million-turnover group has grown from a single Nissan operation in Romford to one that now represents more than 10 manufacturers across a network of over 35 dealerships across London, Essex, Hertfordshire, Buckinghamshire, and Suffolk.

These include 13 Nissan and 10 MG showrooms, along with Kia, Renault, Dacia, Alpine, and Suzuki branches.

An EOT allows company owners to sell part or all of their business, free of capital gains tax, to their employees, without requiring any changes to the management structure, as the buyer is typically a trustee acting in the interest of all staff.

This business structure allows employees to collectively have a controlling interest in the business although they do not take direct ownership of any shares as they are beneficiaries of the trust. Once a company is owned by an EOT, it can pay annual bonuses to its employees free of income tax.

Two main conditions enable the tax breaks - the trust must hold more than 50% of the shares in the company, and if employees receive any benefit from the trust they must all be included and on the same terms.

The financial terms of the Glyn Hopkin transaction, supported by Barclays debt and facilitated by Grant Thornton and Howes Percival were not disclosed.

The company said the acquisition by the EOT ensures that the group can continue its growth strategy, safeguarding the brand’s legacy, ethos, and core values, while also securing a smooth succession plan without altering the leadership team.

Chief executive Fraser Cohen (pictured) said: “We are thrilled with the new ownership structure, which honours the dedication of our staff, many of whom have served 5, 10, 15, 20, 25, and even 30 years. This EOT structure further rewards their contributions.

“We also appreciate the invaluable advice from our advisors, especially Sharon Stemp, whose sector knowledge and banking expertise were crucial in bridging all parties, leading to a successful outcome. We are delighted to welcome her to the Glyn Hopkin board as a non-executive director.”

Glyn Hopkin's eponymous founder and chairman previously held a majority stake in the group and has continued to liaise with its management team, although had become hands-off with the business in recent years.

Grant Thornton corporate finance partner Mike Tillson said: “We are excited to have worked on a deal that benefits both the shareholders and the loyal employees of Glyn Hopkin.

"This EOT deal not only provides a future exit strategy for the shareholders but also ensures consistency for the group, its customers, OEM partners, and staff.

“The existing leadership team will continue to steer the business, upholding the high standards of service Glyn Hopkin is known for.”

Andy Harris from Howes Percival added: “Having collaborated with this leading dealer group for several years, it was a privilege to guide Glyn Hopkin into its next phase. EOT transactions are unique in facilitating a phased exit for founders while preserving operational continuity. These deals often involve significant corporate funding and property considerations.”