Geldards advises GLP Systems on transition to become Employee Owned
Geldards one of the leading advisors on Employee Ownership Trusts has advised sustainable packaging expert GLP Systems on the successful transition to becoming employee owned.
GLP Systems is an award winning manufacturer and international distributor of environmentally positive and sustainable protective packaging. Operating from a 15,000 sq foot factory in Cardiff, the business which has offices in the USA and Amsterdam, exports to a global distribution network. The company uses energy-efficient manufacturing processes to supply innovative packaging products which are biodegradable, compostable and recyclable.
The decision to hand over the reins of ownership to its employees by way of an Employee Ownership Trust (EOT) was taken as part of a wider succession planning process and provided an exit for the shareholders in the company. The business was keen to build on their 30-year legacy of independence, innovation and leadership in their field and to recognise the hard work and efforts of its employees.
Many companies are realising the benefits of becoming employee owned as an effective way to manage succession planning. The Welsh Government is committed to increasing the number of employee-owned businesses in Wales and it is now a popular alternative to a sale on the open market.
Handing over control to employees by way of an Employee Ownership Trust helps the workforce to feel valued and invested in the future success of the business. From a continuity point of view, retaining a skilled workforce keeps essential knowledge and legacy within the firm, ensuring it is ‘business as usual’ following the transition to employee ownership.
Geldards is a leading advisor on Employee Ownership Trusts and has advised numerous businesses on the transition to employee-ownership, helping ensure business continuity and security for the future. The team at Geldards advised GLP Systems on the transition to an Employee Ownership Trust, on the formation of an EOT, the purchase by the EOT of the entire share capital and the process of engaging with the employees on the transaction.
Tax Partner Andrew Evans led the deal advising on all legal aspects of the transaction supported by Corporate Partner Alex Butler and solicitor Mina Dimitrova.
Outgoing CEO and founder, Karl Yeo explained:
“We hired Geldard’s on the recommendation of a trusted adviser. We were certainly not disappointed. The whole team were very communicative and kept all the stakeholders involved in the transaction well informed through the entire process. The team were also very sensitive to deadlines and worked tirelessly to get the deal over the line within the required timeframe”.
Andrew Evans, Partner at Geldards Cardiff commented:
“The transition of GLP Systems to employee ownership is the latest successful sale to an EOT carried out by our team at Geldards. We worked closely with the senior management to complete the transition on time and within budget.”