Haverfordwest-based Carreg Construction has been acquired by its employees. The company, which currently employs 21 people, has been sold by its founders Andrew and Sue Phillips.
The building firm, which was set up by in 2003, has worked on projects including the cloisters in St David’s Cathedral, Oriel Y Parc Gallery and Lexden House in Tenby.
Following more than 40 years in the building trade Mr Phillips will stay on as a company director, and continue to help grow and steer the business with the help of his fellow directors. An open sale was considered before revisiting pre-pandemic original plans for staff to acquired the firm via an employee ownership trust (EOT) . The value of the deal has not been disclosed
Mr Phillips said: “We looked to put the business on the open market for sale, but it just didn’t feel right, so after discussing our plans further with colleagues in the industry - who explained that EOT wasn’t an overnight sale and that it could be done gradually - it became the perfect progression for us.
“We can keep the continuity and skills in the business, and I can eventually pass the business over fully to the EOT directors, once they have settled in. It really is the perfect succession solution for us.”
Along with Mr Phillips and fellow director Amy Morgan, Carreg’s newly appointed head of construction, Richard Leyshon, has been appointed as a director.
Sion Morgan will continue his role a non-executive director (NED) of the company and will be joined by new NED Peter Griffiths, former chief executive of Sainsbury’s Banking Group and Principality Building Society.
A new EOT board has been formed and will comprise of director Ms Morgan, site supervisor and carpenter Luke Roberts and independent trustee Andy Jones, the former chief executive of the Port of Milford Haven Port.
Carreg Construction director Ms Morgan said of the transition to an EOT: “We are really excited about becoming an EOT. The future is bright for Carreg. Having worked closely over the years with local company Melin Tregwynt who transitioned to an EOT 12 months ago, it gave us huge confidence that we could also make this significant change to our family business.
“Having worked for Carreg for ten years, I am really pleased that my parents can now start reducing their time in the business, but also I am delighted that we can continue the company with the same ethos.’’
Carreg Construction was advised on its employee ownership transition by Social Business Wales, which is delivered by Cwmpas and was supported throughout the process by independent EOT specialist, Alun Thomas.
Branwen Ellis, specialist employee ownership consultant for Social Business Wales, said: “We were so pleased when Carreg Construction came full circle and came to feel that an EOT was the best succession solution for them.
“Going down this route, has enabled the owners to put their own plan in place in line with their own timescales, expectations and values. As Andrew and Sue have discovered, the EOT model enables them to slowly and securely pass their business onto the next generation of the Carreg team, ensuring the long term sustainability of the business, employees’ jobs and the couple’s legacy.” Geldards advised the EOT on the acquisition of Carreg Construction from the Phillips family.
Andrew Evans, partner at Geldards, said: “We were delighted to act for Carreg Construction, and it was a pleasure to work with Andrew and Amy to guide the directors and the employees through the process to becoming employee owned.
“As well as advising on the formation of the EOT, Geldards were pleased to help employees understand their new roles and responsibilities as trustees. The purchase by an employee ownership trust will enable the highly skilled workforce to continue with their award-winning construction projects with minimal disruption to the business.”
Carreg Construction was also advised by Azets finance. Partner with the firm Katherine Broadhurst said: “We have been delighted to be involved in Carreg’s journey towards Employee Ownership over a period of time both directly and with the support of Cwmpas.
“We are sure that the company will continue to go from strength to strength and the employees will build on the culture and values established by Andrew and Sue and ensure that the award-winning specialist skills are retained in Wales for the future.”
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