Elland Steel Structures Ltd, one of the most successful steelwork contractor in the country, has set up an Employee Ownership Trust (EOT).
Putting the business into the hands of the team of people who work for it, and making them the direct beneficiaries of the company’s future success.
Since incorporation in 1973, the majority of shares have been held by the Denham Family, and with no natural successor to continue the family’s legacy the decision has been made to transfer ownership of the business, by way of sale to a newly formed EOT.
Mark Denham who is the current MD and Chairman of the business, along with the other shareholders, wanted to secure the long-term future of the business and were keen to avoid a messy trade sale or external investment. They saw many advantages to the switch to employee ownership and believe that it will benefit the founders, the employees, and the company’s clients.
This isn’t the first move to an EOT for businesses operating within the construction industry, firms such as McGee, Clifford Devlin and Triton Construction have all taken the same approach.
The existing senior management team will remain unchanged and business relationships and operations with supply-chain partners will be unaffected.
“It was very important to my Father and I that when the time came to sell the company that it was left in safe hands. We want the company to flourish under its new structure” said Mark Denham.
“Becoming an EOT means everyone has more input into how the business is being managed and with the benefits of an EOT we see it as a win-win for everyone involved.”