Employee ownership to ensure long-term future of engineering company
RR Engineering Ltd, based in Scarborough, is becoming an employee-owned business.
The company was set up over 30 years ago by Roy Hendry and Russell Beck. They are handing over 100% of the business to their employees.
Karen Bulman, Jamie Thompson, Matthew Taylor and Jamie Dixon will take over the day-to-day running of the firm.
Since its formation in 1990, the business has established itself as a provider of products to a range of industries throughout the UK. It is based within a 25,000 sq ft site on Eastfield Industrial Estate.
The company provides sheet metal fabrication and design services working with stainless and mild steel, aluminium and specialised materials.
Hendry and Beck, joint managing directors, are transferring all of their shares to an Employee Ownership Trust (EOT). Under the move – conducted with advice from accountancy firm Azets – all employees will benefit financially from the future success of the company.
Hendry and Beck said: “It’s such a proud moment to be able to hand over RR Engineering. Selling the company we founded to our employees through the creation of the EOT ensures the stability of the business for the long-term and supports our desire for further continued growth.
“This move recognises the value our fantastic team has delivered over the years, and it is a very exciting opportunity for each individual to take a pivotal role as the businesses progress.
“We’d like to wish Karen Bulman, Jamie Thompson, Matthew Taylor and Jamie Dixon all the best in their new leadership roles.”
RR Engineering was advised by Tariq Javaid, corporate finance partner, Richard Weston, corporate finance manager and Karen Sadler, senior tax manager at Azets.
Legal advice was provided by Chris Blantern at Tyr Law and Adrian Ballam at Ward Hadaway.
Javaid said: “RR Engineering is a business exceptionally well-suited for employee ownership, being an organisation with a strong culture, firmly established values, and an emphasis on the quality of its products and its people.
“It has been a privilege to work with Russ, Roy and the team in assisting them with this transition and I am confident the company has a bright future as an employee-owned business.
“Azets advised on six EOTs in Yorkshire in 2022 and we’ve already got several more in the pipeline this year.
“They are an increasingly popular option for the transition of ownership, given the wide range of benefits they can provide to the business, its owners and employees.”