Scottish firm R&W Scott completed this transaction in July 2024.
R & W Scott was a long standing family business starting in 1873 as a small fruit-harvesting business with half an acre of strawberries. The business moved into producing jams and preserves and was handed down through five generations of family members before selling to a trade buyer in 1980. The company added chocolate coatings to its product range which quickly became their most popular product.
The company then sold again and the parent company taken over by a PLC. In 2019, three of the company’s executives staged a management buyout (MBO). The leadership team delivered on their 5-year growth plan to arrest losses, safeguard employment, and achieve annual EBITDA of £2m.
The decision to create this new structure was driven by the desire to sustain the company’s independence and recognise that R&W Scott’s success was built upon the hard work and commitment of its employees. As part of the transaction, a significant proportion of the workforce benefitted from the employee share plan that was in operation at the time.
“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,” commented Clare McNeil, Commercial Director of R&W Scott.
“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”
Operationally R&W Scott’s senior leadership team, including Stephen Currie, managing director, Clare McNeil, commercial director, and Michael Hewitt, finance director, will continue to oversee the day-to-day operations. John Easton will exit the business but will hold a position on the Trust board.
R&W Scott’s management team has opted to secure external funding to speed up the EOT transition process and turned to specialist bank, Shawbrook, who have supported several EOT transactions. Shawbrook provided a hybrid funding facility, combining asset-based lending with a property and cashflow loan to support the acquisition from the original owners and assist with R&W Scott’s continued growth plans.
Michael Hewitt, finance director at R&W Scott commented, “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.”
David Cayzer, Director at Shawbrook said, “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.”
Scotland based employee ownership specialists.
