The group now operates under an Employee Ownership Trust (EOT) – all the company shares are acquired by the EOT for the benefit of its employees – allowing R&W Scott staff to participate in and influence the company’s future direction, without having to directly own or buy shares.
R&W Scott’s senior leadership team will continue to oversee day-to-day operations, including managing director Stephen Currie, commercial director Clare McNeil and finance director Michael Hewitt. John Easton will exit the business but will hold a position on the Trust board representing the outgoing shareholders.
Commenting on the employee ownership, Clare McNeil said: “Many businesses in our sector are acquired by larger competitors or outside investors as they grow. To safeguard employment here and continue to deliver sustainable growth, we’ve created the R&W Scott Employee Ownership Trust.
Long-term benefits
“Since we bought the business in 2018, we’ve delivered year on year growth, and our plan is to maintain that trajectory for the long-term benefit of our employees.”
R&W Scott’s has secured external funding from specialist bank Shawbrook to help speed up the EOT transition process. This hybrid funding facility combines asset-based lending with a property and cashflow loan to support the acquisition and assist with the manufacturer’s continued growth plans.
Finance director Michael Hewitt added: “The decision to move to employee ownership feels right for our business right now and we want to make this move as seamless and effortless for everyone involved. Working with a funder like Shawbrook who understands the processes and requirements is central to meeting this objective.”
The current leadership team bought the 144-year-old business through a management buyout in 2018 and have delivered on their 5-year growth plan to arrest losses, safeguard employment and boost earnings.
Independence and recognition
Transitioning to a EOT was predicated by a desire to sustain the company’s independence and recognise the hard work and commitment of its employees.
David Cayzer, director at Shawbrook, concluded: “As more and more business owners consider succession planning and retirement exits, EOTs have become a more prevalent option in the market. and we have supported a wide range of organisations with funding to fast-track these transitions.
“We are delighted to be working with Michael and the team at R&W Scott with funding for their EOT and look forward to seeing the business grow as it progresses through this exciting stage of its journey.”
