Geldards helps MII Engineering transition to Employee Ownership Trust

Geldards one of the leading advisors on Employee Ownership Trusts has advised major engineering firm MII Engineering on the successful transition to becoming employee owned.

The Caerphilly-based company has a heritage dating back to 1984 and has grown to become a market leader in the fabrication, installation, maintenance and repair of machinery, plant and steelwork. With over 350 employees, across a range of trades, such as fabricators, welders, platers, fitters, pipe fitters, pipe welders, riggers, electricians the company has a strong blue-chip customer base including clients such as Tata Steel.

The decision to hand over the reins of ownership to its employees by way of an Employee Ownership Trust (EOT) was made to ensure the long term stability of the business. The move ensures continuity of the business and safeguards the future of the business which  will pass to the hands of the skilled workers who have contributed to its growth and success to date. MII Engineering is one of the largest businesses to become employee owned in South Wales, and possibly in the whole of Wales.

The Welsh Government is committed to increasing the number of employee-owned businesses in Wales and it’s becoming an increasing attractive alternative to businesses as a preferred option, rather than a sale on the open market. Many companies are realising the benefits of this model as an effective means of succession planning, helping to retain the integrity, culture and knowledge-base of the business and ensuring business continuity by retaining valued staff.

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 MII Engineering  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.

Matt Moody, Founder & Director MII Engineering said:

“Our business has enjoyed sustained growth over the past decade and we decided the time was right to transition to become Employee Owned to secure the independence and future of the business for the dedicated and loyal workforce who helped achieve our success.

Geldards felt very much part of our team as they guided us expertly through the legal process, everything was new to us so it was a steep learning curve. From ensuring we considered every angle thoroughly to advising us how to engage our staff in the process of handing over to an Employee Ownership Trust, the service Geldards provided was exemplary and delivered with good humour and pragmatism. I can highly recommend their services to any business considering the path to Employee Ownership.”

Andrew Evans, Partner at Geldards Cardiff commented:

“It was a pleasure to work with the senior team at MII Engineering to safeguard the business legacy. We were able to draw upon lawyers from our Corporate, Tax, Employment and Commercial Properties to provide a smooth transition to employee ownership.”