Geldards’ corporate team have advised Pennine Healthcare, the Derby based manufacturer of medical devices, on setting up and facilitating an Employee Ownership Trust (EOT).
Pennine Healthcare has been based in Derby since the 1970’s and is a leading manufacturer single-use, sterile medical devices and customised procedure packs for the NHS and the wider healthcare sector both in the UK and 80 countries worldwide.
The Employee Ownership Trust hands ownership of the company onto its workforce. The newly created Pennine Employee Ownership Trust represents the interests of the company’s 200 employees and holds 100 per cent of Pennine Healthcare’s shares. The move not only safeguards UK manufacturing for the business, but means the Trust will run the business for the current and future benefit of its Employees.
Debra Martin and Andrew Evans from Geldards’ Corporate team provided expert legal advice to set up Pennine Employee Ownership Trust and facilitate the transfer of ownership to the Trust. The Geldards team worked alongside advisors Dains Accountants and Smith Partnership.
Debra Martin Corporate Partner, Geldards comments:
“Dains and Geldards have independently completed 6 employee ownership transactions in the last month, which confirms the level of activity in the market for this type of transaction. Through early engagement, more businesses can consider employee ownership as an alternative to MBO or trade sale and whilst the model is not suitable for all businesses, there are many advantages, not least allowing outgoing shareholders to build a lasting legacy”.
Luke Fryer, Chief Executive, Pennine Healthcare said:
“We are delighted with the outcome for everyone involved and it is great to be able to access this specialist knowledge here in Derby”.