Tue, 29 Oct 2024 | BUSINESS SALE
A 50-year-old manufacturer and supplier of power tool drilling accessories has transitioned to employee ownership.
Sheffield-based Armeg, which was founded by and named after brothers Andrew and Michael Green in 1973, designs and manufactures a range of products for professionals such as masonry core drills and solid board cutters for those working with flooring. It is also understood to be the UK's only manufacturer of SDS plus hammer drill bits.
The group will now be owned by its 55 employees by the newly-formed Armeg Employee Ownership Trust (EOT), with each employee becoming a beneficiary.
The current directors will continue to manage the company's operations and aim to bring through a new generation of management.
Managing director John Mowthorpe, who was part of a buy-out of the founding brothers back in 1999, now owns the business with Charles Pugh. Mowthorpe 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.”
He added that in order to sustain that status and continue to deliver those benefits for its colleagues and customers, the current ownership chose the EOT model.
"There are no immediate changes planned to either the management team or board structure at Armeg. It is very much business-as-usual, and the sale has been designed to deliver seamless management and leadership continuity for years to come,” he said. “The change in ownership will allow a structured future shift in leadership under the careful management of the EOT's board of trustees."
Advisers included Sheffield’s Wake Smith Solicitors on legal issues and accountants Shorts for corporate finance and tax advice.
"EOT governance structures help ensure the employees have a voice in the strategic direction of the company while maintaining stability and continuity in its operations,” said Tony Haywood associate in Wake Smith’s company commercial team.
Connor Marshall, corporate finance senior executive at Shorts, added: "This transition ensures that the culture and legacy of the business continues, with no change in day-to-day company operations for customers or employees.”
Learn more about the growing demand for Employee Ownership Trusts
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