Michael Barugh Steel Stockholding
Park Place advised Michael Barugh Steel Stockholding (MBSS), one of East Yorkshire’s leading steel suppliers, on its transition to employee ownership through a sale to an Employee Ownership Trust (EOT).
With their customer orientated philosophy, MBSS have serviced the local market for over 20 years. By maintaining a comprehensive steel stock and efficient local delivery, MBSS has built up a loyal customer base throughout East Yorkshire and the Humber.
Park Place supported the shareholders in understanding their options in relation to their ongoing investment. The shareholders had received an unsolicited approach from an acquisitive trade buyer. Park Place were asked to support them in the evaluation of that offer and advise on any alternative options which may allow them to achieve their objectives. The shareholders, who were all employees of the business, were keen to ensure the business maintained its customer-oriented values and remained independent. It became clear that an employee buy-out via a sale to an EOT best achieved the shareholders’ goals and provided a natural next step in the history of the business.
Jeff Duffield, Managing Director of MBSS, commented “We are extremely grateful for the guidance provided by Park Place. They took the time to consider our options and clearly articulated the respective merits of each to enable us to make an informed decision. We had never heard of an EOT, but it became apparent that it was the most suitable solution for the shareholders and the company. Ben and Danny guided us through the transaction and remained on-hand to support us post completion as we implemented the new structure.”
Ben Peacock, Partner on the transaction, commented “We are delighted to have supported the shareholders and the company with the ownership transition. The business is well suited to EOT ownership with their close-knit employee base and deep-rooted values for servicing the local market. An employee buy-out allowed for a business-as-usual transition whilst enabling the incumbent shareholders to deliver their medium-term succession plans”.
