Darwen Terracotta, a UK-based specialist manufacturer of architectural terracotta and faience, has successfully transitioned to employee ownership through an Employee Ownership Trust.
The transaction was advised by Logros Advisory Partners, acting as lead corporate finance advisor to the shareholders, alongside legal and funding advisers supporting the implementation of the Employee Ownership Trust structure.
Based in Darwen, Lancashire, Darwen Terracotta has built a strong reputation for craftsmanship, technical expertise, and the manufacture of bespoke architectural ceramics. The move to employee ownership secures the long-term independence of the business while recognising the contribution of the employees who have helped build its success.
Steve Allen, Director of Darwen Terracotta, commented:
“Transitioning the business to employee ownership was a decision driven by people and legacy. We wanted to ensure the business remained independent, that our employees were recognised for the role they have played in building it, and that the company was set up for long term continuity. Logros supported us throughout the process and helped deliver an outcome that feels right for the business and everyone involved.”
Brian Higgins, Managing Partner at Logros Advisory Partners, added
“Employee ownership can be an excellent solution for founders seeking to realise their investment in a business, while still protecting the culture, people and long term future of the business. This transaction was about creating continuity, rewarding employees and delivering a structured and considered ownership transition.”
David Filmer of Forbes Solicitors said
“This was a well structured Employee Ownership Trust transaction that balanced the objectives of the shareholders with the long term interests of the business and its employees. We were delighted to have assisted in the process.”
Jenny Taylor of HSBC added
“Supporting an Employee Ownership Trust requires a clear understanding of the business and its future plans. Early engagement allowed the funding structure to be aligned with long term sustainability, ensuring continuity for the business and its employees.”
Hayley Cox of Saffery added
“Thorough financial due diligence is critical in any ownership transition. Our role was to provide clarity and assurance around the financial position of the business, supporting a well informed and robust Employee Ownership Trust structure for the shareholders and employees.”
The Employee Ownership Trust enables the shareholders to achieve an orderly and considered exit while embedding a long term ownership framework designed to support employee engagement and sustainable growth.
Logros Advisory Partners continues to advise business owners across the UK on exit planning and ownership transitions, including Employee Ownership Trusts, management buyouts, family successions and strategic sales.
