Engineering firm transitions to employee ownership

A Lincoln industrial engineering firm has transferred to an employee ownership trust (EOT).
Castlet Holdings, which counts Siemens, Tata Steel and BAE Systems among its clients, has transitioned to an EOT on the advice of Sills & Betteridge corporate partner Euan McLaughlin.
He collaborated with other professionals, including business consultants Mobius Group and regional accountancy practice Wright Vigar, to flesh out the terms of the deal and undertake shareholder engagement.
Castlet managing director, Tim Eagles, said: “Euan provided innovative, astute legal advice with a human touch, offering comprehensive support to myself and the board at every stage of the transaction. It made a huge difference having a solicitor who had taken the time to understand the individuals and dynamics within the business, rather than just treating this as a job to complete”.
McLaughlin said: “EOTs are a relatively new phenomena which are fast gaining traction as their benefits become more widely understood – tax advantages, succession planning and social responsibility among the key motivators. They are most suited to business owners who value the future of their company and the people who helped to build it, over an immediate cash sale – and can be an excellent option where a trade sale is either unavailable or unattractive to business owners.”