Case studies - Stewart Buchanan Gauges
When planning for his retirement the owner, Frank Phair, who led the company since the early 1970s, was faced with a succession dilemma. He wanted to secure the future of the business in the local community and create a structure that would enable further growth.
The transition to employee ownership was initially explored two years ago. The Baxi Partnership provided specialist project management, including financial and employee engagement advice while Wright Johnston MacKenzie provided legal advice.
Most importantly the company wanted to avoid a sale to a competitor which could result in relocation, redundancies or closure. Instead transition to employee ownership is intended to provide a solid platform for further expansion.
The deal, which is for an undisclosed sum, involved the creation of an Employee Benefit Trust, which acquired the shares from Frank Phair.
The owner of Stewart-Buchanan Group, Frank Phair said: “I am delighted the company has been bought by the employees, securing its future in the local community.
“The business has a long relationship with Kilsyth and I was determined that it would be retained here, rather than be sold to a competitor. The company is now in great hands, and I wish the new employee owners every success.”
New managing director Stephen Nicol added: “We would all like to thank Frank for providing us with the opportunity to acquire such a successful business. Stewart Buchanan Group is in safe hands.
“The employee buyout team has had outstanding support from Frank, CDS, Baxi Partnership and Wright Johnston MacKenzie and, most importantly, from the employees, who have embraced this exciting opportunity to own their own business. I would like to thank them all.”
John Alexander, investment director, Baxi Partnership said: “Stewart Buchanan Group has embraced a business model that promises to unleash creativity and productivity through a sustainable ownership structure.
“It has been tremendously exciting to support them in making the move into employee ownership and
About Stewart-Buchanan Group
Stewart Buchanan Gauges was formed in 1870 and has seen sustainable growth and a growing reputation ever since for innovation in the design, manufacture and installation of high quality products.
Stewart Buchanan Group are now recognised as one of the leading manufacturers in their particular market with worldwide sales into 50 different countries.The Stewart Buchanan Group’s main production facility is located near Glasgow. The 42,000 sqft manufacturing plant features the latest state of the art 3D design, CNC machinery and manufacturing techniques.
About Baxi Partnership
Baxi Partnership is a dynamic, successful employee owned company that has mentored more than 30 organisations into employee ownership. We operate across the public, private and social enterprise sectors throughout the UK, including an advisory service that helps other organisations to become owned by their employees. To find out more about Baxi Partnership, please visit our website at www.baxipartnership.co.uk
Baxi Partnership is running a free evening seminar especially for those interested in employee ownership, how to exit your business, and the share ownership options available. Regus, Buckingham Palace Road, London, 10th May. To reserve your free place email firstname.lastname@example.org, visit our website www.baxi.partnership.co.uk or call Denise Logan on 0845 680 6702.