Geldards advises Pipe Tool Specialists on transition to Employee Ownership Trust

Geldards one of the leading Employee Ownership Trust advisors has advised Pipe Tool Specialists on the successful transition to becoming employee owned.

Established in 1964 Pipe Tool Specialists boasts a long trading history as a leading provider of pipe tools, security products and technology to tradespeople in the plumbing, pipefitting and welding industries, with trading sites in Lincoln and Manchester.

Having steered the helm of the business for almost thirty years, when Director Steve Stefaniuk decided it was time to step back from the business, he considered handing ownership to Pipe Tool Specialists’ loyal employees by way of an Employee Ownership Trust (EOT) to be the most effective route for succession planning, whilst retaining a role in the company as Managing Director.

Keen to retain the hard-won legacy of the company, which enjoys a reputation in the industry for its highly experienced and knowledgeable staff, handing ownership to the employees who helped build the company’s success was an easy decision to make. As well as ensuring the legacy and heritage of the company endures in the future, the transition to EOT protects local jobs at the company’s two operating sites in Lincoln and Manchester.

Pipe Tool Specialists are one of the few employee owned companies in Lincolnshire, however more businesses are realising the benefits that transitioning to an EOT offers in terms of succession planning. 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. Geldards Corporate team advised Pipe Tool Specialists on the transition to an Employee Ownership Trust, on the formation of an EOT, the purchase by the EOT of the entire share capital.

Tax Partner Andrew Evans led the deal advising on all legal aspects of the transaction supported by Partner Debra Martin and Solicitor Sophie Henwood.

Steve Stefaniuk, MD commented:

“From our initial meeting all the way through to the post agreement documentation everything was handled in a professional and efficient manner. Overseeing the team we worked with at Geldards you ensured everything was handled speedily and effectively. The strategic advice you provided was of particular importance and guided us through several key decision-making processes.

All of the above, and the ability to form an effective partnership with others in the process, means that I would gladly recommend your firm to anyone considering the journey we have made.”

Andrew Evans, Partner added:

“It was a pleasure to work with Steve and the team at Pipe Tool Specialists to guide them through the transition to employee ownership and assist in securing the future of the company. ”