A transition to employee ownership, combining a shareholder exit with continuity for staff and customers.
The client
Established in 1999, Portsmouth-based ABC Glass Processing (ABC) is a glass processing specialist and is among the leading bespoke glass manufacturers and glass suppliers in the South of England. From its 20,000sq ft factory, ABC offers a wide variety of products and services, ranging from glass cutting and processing, to balustrades and glass splashbacks. The business has a circa £5m turnover, and has built an unrivalled reputation within the glass industry for providing high-quality products to its loyal customer base.
What we did
The K3 Deal Advisory team delivered the sale of ABC to an Employee Ownership Trust (EOT). This is a noteworthy achievement for ABC, as its three glass merchant founders empower the company’s workforce to play an active role in the next phase of its journey. This transaction was delivered by K3 Deal Advisory’s K3 Deal Advisory experts Director Philippa Robinson and Manager, Darra McCarthy-Paul. Tax support was provided by Managing Director, Holly Bedford from K3 Deal Advisory’s sister company K3 Tax Advisory. The EOT transaction was delivered in partnership with sell-side lawyers Howes Percival and Bright LLP who acted as a lawyer on behalf of the Trust. The collaborative partnership ensured that compliance with regulations was achieved, in order to secure a tax-efficient deal for the vendors.
The outcome
The transaction allows the shareholders to realise the value they have created over the last 20 years and to enjoy their retirement with the comfort of knowing that the structure of the business remains in place for staff and the legacy of ABC can continue. The sale of shares to an EOT is a transformative step that empowers employees by providing them with beneficial ownership of the company, aligning their interests with the long-term success of the company and ensuring an exciting future for the business.
As a close-knit family business at heart, with an ethos grounded in service and quality over quantity, we decided that an EOT was the right option to carry the company forward for the long-term benefit of it and its employees and for the exit of the current owners. In this journey we were very grateful for the unwavering support of the K3 Deal Advisory team led by Phillippa Robinson. We are also very appreciative of the legal teams involved whose advice was invaluable. The process was undertaken in volatile market conditions but successfully concluded.
Ian Sawyer, Director at ABC commented
