Staff to take control of heating firm
STAFF are preparing to take control of Preston heating firm Home Insulation Services after it was bought by the Baxi Partnership in a multi-million pound deal.
The £20m investment fund was set up by Philip Baxendale – who sold the boiler maker Baxi to staff in 1983 – to encourage staff ownership.
In the coming months the 200-strong workforce, led by chief executive Paul Cooper, will acquire the business from Baxi using debt finance.
Mr Cooper said: “Employee ownership has several benefits over a conventional MBO. One of the main factors is all the employees have the opportunity to share in the future success of the business.
“I know my predecessor was keen to ensure that individuals who’ve helped make it a successful company share in the future success.”
The business was established in 1989 by Chris Turnbull who has sold all his shares and will leave next month.
The value of the deal was not disclosed but it is understood the Baxi Partnership paid several million pounds for the £11m turnover company.
Andrew McDonald, director at the Preston office of accountancy firm Tenon, advised on the deal. He said: “Studies show that employee-owned companies tend to grow faster and generate more profit than their conventionally run competitors.”
