FRP selected for employee ownership transition at LGS
Prefabrication firm Lemon Groundwork Solutions has transitioned to employee-ownership. The deal for the £50 million-turnover firm was advised on by professionals from FRP Corporate Advisory.
Employee ownership is the fastest growing form of business ownership in the UK. Over the last decade, the number of employee-owned businesses has passed 1,300. The latest business to adopt the model is Lemon Groundwork Solutions (LGS), a manufacturer and supplier of steel reinforcement and prefabrication products with operations in Essex and Warwickshire.
Founded in 1978, LGS’ materials have been used in the construction of major projects across the UK, including Kensington Palace Gardens, Chelsea FC Training Academy, the London Olympic village and Wembley City. As a result, the firm – which has a workforce of more than 100 employees – has grown rapidly, and now has an annual turnover of close to £50 million.
This growth was buoyed by a partial management buyout in 2016 – and the transition to full employee ownership aims to build on the success of the firm as an independent entity. LGS’ sale to an employee ownership trust aims to ensure it will maintain its existing culture, while enabling the management team to incentivise all staff on the next stage of the company’s journey.
Kevin Childs, Executive Chairman at Lemon Groundwork Solutions, stated, "LGS has been a specialist supplier of steel reinforcement and groundworks products for over 40 years, and we employ an exceptional team of specialists in their field. We're committed to creating a working environment that promotes employee loyalty, and our move to employee ownership will do just that – by allowing our teams to be even more invested in the future growth of the business."
LGS was advised on the deal by a team from FRP Corporate Finance. The team was led by Partner Jon Dodge, and included Director Matt Field and Associate Director Alex Hunton. It provided financial modelling, a comprehensive business valuation, and submitted the relevant tax clearances to HMRC for the deal, while it advised the business on the establishment of the firm’s new employee ownership trust.
Commenting on the deal, Dodge added, “Having initially supported LGS on its partial management buy-out in 2016, we’ve seen the firm go from strength-to-strength. It’s a true testament to the quality and ambition of the leadership team and its entire workforce. We’re proud to have advised Lemon on achieving its’ latest milestone, which will maintain the well-established culture of the business, cement its position as an employer of choice and empower its teams to drive the business forwards on the next stage of its growth journey.”
With over 570 people and 79 partners across the UK, FRP is a specialist consulting firm that works to assist companies as they transform their operations via deals. The firm offers corporate restructuring, corporate finance, forensic services, pensions advisory and debt advisory services – while also boasting a strong reputation for creating, preserving, and recovering value across a range of complex situations.
