A South Yorkshire manufacturer and supplier of power tool accessories, drill bits and tools has become an employee owned business.
Sheffield-based Armeg Ltd, established in 1973, has been sold to the newly formed Armeg Employee Ownership Trust.
The move is set to enable the company’s 55 employees to share directly in the company’s success and future growth strategy and will mean business as usual for the firm with the current directors continuing to manage the company’s operations to bring through a new generation of management.
The new ownership model, established through an employee ownership trust (EOT), ensures each employee becomes a beneficiary of the trust.
Advisors included Sheffield’s Wake Smith Solicitors on legal matters and accountancy practice Shorts for corporate finance and tax advice.
MD John Mowthorpe, who owned the business with Charles Pugh, said: “Armeg has been a Sheffield based, independent drill bit manufacturing specialist for over 51 years. During that time, it has enjoyed its independent status and benefited from a set of values that have allowed it to thrive over that period.
“In order to sustain that status and continue to deliver those benefits for its colleagues and customers, the current ownership has formed Armeg EOT Limited and sold its entire shareholding to the EOT.
“There are no immediate changes planned to either the management team or board structure at Armeg Ltd. It is very much business-as-usual, and the sale has been designed to deliver seamless management and leadership continuity for years to come. The change in ownership will allow a structured future shift in leadership under the careful management of the EOT’s board of trustees.
“I am delighted that we have completed the sale which I am convinced will ensure Armeg’s longevity as an independent and successful manufacturing company. Placing colleagues’ welfare at the heart of our operations and fulfilling customer needs as our primary purpose, will ensure Armeg’s continued success.”
Tom Haywood, associate in Wake Smith Solicitors’ company commercial team, said: “This secures the future of the business for the benefit of all the staff going forward and we wish them, along with John and Charlie all the success in the future.
“EOT governance structure helps ensure the employees have a voice in the strategic direction of the company while maintaining stability and continuity in its operations.”
Connor Marshall, Corporate Finance Senior Executive at Shorts, said: “It has been great to assist John and Charlie in securing the long-term future of Armeg. This transition into an EOT ensures that the culture and legacy of the business continues, with no change in day-to-day company operations for customers or employees.
“The employees have always been at the core of Armeg and in John and Charlie’s thoughts throughout the process and it will be great to see them benefit from the business going forward.”
