A Glasgow-based construction firm has become the largest business in Scotland to transfer its entire shareholding to an employee ownership trust.
Founded in 1974, Tough Construction employs more than 500 staff and directly employed on-site personnel. It works mainly on projects for house builders throughout central Scotland, Perthshire, Fife and Ayrshire.
Shareholders Bob Leishman, George Duncan and Kenny MacKenzie took over the business in a management buyout in 2007.
Leishman explained: “Our success is largely due to the loyal team we have at Tough Construction, we are fortunate that we have a low turnover relative to the sector, and that’s largely because we like to think we look after our people well, offering opportunities for training and development.
“A sale to a third party may have disrupted that, while this move to employee ownership allows the company to continue to offer excellent service to our clients, and secure employment for our people. “
Leishman added: “A sale to an employee ownership trust lets us have our exit, knowing that the company is in safe hands.
“We have a talented leadership team ready to take over and it’s time for the old guard to step aside - so far, the news has been well received by staff and clients.”
The three shareholders will retire following the completion of the transaction and the company has made two new board appointments: Gary Hassan will become commercial director and Mhari Greer is promoted to finance director.
They join construction director Craig Lavery and procurement director Gillian Beaton on the board, alongside Alistair Lauder, who has been promoted to the position of managing director.
Lauder commented: “The shareholders are demonstrating tremendous vision in transferring their shareholding to the trust - I believe it is good for the company and for the employees.
“The company will celebrate its 50th year in business next year, it will be good to do that as an employee-owned business.”
Graham Cunning, head of corporate finance in Scotland with accountancy firm Azets, which has been managing the transaction, added: “The sale to an employment ownership trust puts the future of the business in the capable hands of the new management team and their employees.”
Carole Leslie, director of Ownership Associates, provided specialist employee ownership support, with legal advice provided by Wright Johnston Mackenzie.
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