Employees take on ownership of building products firm
Rotherham-based Build Lite UK, which makes architectural mouldings and other building products, has switched to employee ownership through an Employee Ownership Trust. (EOT)
The firm’s directors have sold 100% of their shares in the business.
Managing director Paul Goodlad said: “Both myself and fellow directors, were keen to ensure the business was in safe hands when, at some point, we hand over the reins.
“Our vision has always been to create a family atmosphere that attracts the best staff, loyal customers and dedicated suppliers.
“We have always admired the partnership concept of John Lewis and, therefore, looked at a way of creating a similar scheme here at Build Lite.
“We were made aware of the different types of EOT schemes, some of which include a financial commitment from the staff.
“However, it was important, to us that our long standing employees would benefit from the scheme without incurring any financial burden.”
The directors were advised by Sheffield-based Mackenzie Spencer, which created a transaction process for the company, whereby the directors could sell 100% of their shares at market value to an independent trust.
This newly formed trustee company enables Build Lite’s staff to become, in effect, owners of the business without having to purchase any shares.
Goodlad added: “The trust, with its appointed board, employee representative and three independent trustees, now owns and manages the company while the current directors remain at the helm for up to the next two years to ensure a smooth handover.”
The trust has appointed a new managing director, who also becomes a trust board member. Tim Turner, joins from Derbyshire-based John Smedley, a manufacturer of British knitwear.
Turner said: “Having spent a considerable amount of time in the construction industry, I am passionate about quality and reputation.
“Therefore, the combination of joining a company with a range of products that offers real genuine solutions and the launch of an Employee Ownership Trust was a huge draw.
“This is a definite win-win for all involved. From the current directors and staff to our existing and new customers and suppliers, everyone benefits.”
