Lincoln industrial engineers Castlet Holdings Ltd, who list Siemens, Tata Steel and BAE Systems among their customers, have placed their company’s future in the hands of the employees.
On the advice of Sills & Betteridge Corporate Partner Euan McLaughlin, Castlet Holdings Ltd has been sold to an Employee Ownership Trust.
Having provided remedial advice on various shareholder issues in the past, Euan proposed to the Board that an EOT was the key to the long-term stability and success of the business – which was already owned by a group of its employees.
Euan collaborated with other professionals, including business consultants Mobius Group and regional accountancy practice Wright Vigar, to flesh out the terms of the deal and undertake shareholder engagement.
Euan said: “EOTs are a relatively new phenomena which are fast gaining traction as their benefits become more widely understood – tax advantages, succession planning and social responsibility among the key motivators.
“They are most suited to business owners who value the future of their company and the people who helped to build it, over an immediate cash sale – and can be an excellent option where a trade sale is either unavailable or unattractive to business owners.”
