Portsmouth-based ABC Glass Processing becomes employee-owned

ABC Glass Processing has transitioned to employee ownership. The deal was advised upon by experts from Quantuma.

Employee ownership trusts grant employees effective ownership of the company. Studies have shown such structures to motivate employees to drive further growth, as they hold a stake in the long-term success of the company and stand to benefit from any future dividends. This not only helps to improve employee retention but can also help to recruit the best new industry talent.

Due to these factors, EOTs are the fastest growing form of business ownership in the UK. According to the Employee Ownership Association, the total number of employee owned businesses in the UK is now at 1,418, having grown by 332 in 2022. This was a 37% increase on the number recorded the previous year, and a record year for growth.

The most recent firm to move into such a model is ABC Glass Processing; a company which offers a wide variety of products and services, ranging from glass cutting and processing, to balustrades and glass splashbacks. Established in 1999, the Portsmouth-based firm is among the leading bespoke glass manufacturers and glass suppliers in the South of England.

Speaking on the transition, Ian Sawyer, director at ABC, said, “As a close-knit family business at heart, with an ethos grounded in service and quality over quantity, we decided that an EOT was the right option to carry the company forward for the long-term benefit of it and its employees and for the exit of the current owners.”

The sale of shares to an EOT is a transformative step that empowers employees by providing them with beneficial ownership of the company, aligning their interests with the long-term success of the company. The transaction allows the shareholders to realise the value they have created over the last 20 years and to enjoy their retirement with the comfort of knowing that the structure of the business remains in place for staff and the legacy of ABC can continue.

The transaction was delivered by experts from several professional services firms. Sell-side lawyer Jeremy Hyde, Howes Percival and Matt Cook from Bright acted on behalf of the trust. Tax support was provided by Managing Director, Holly Bedford from Quantuma-sister-company K3 Tax Advisory. Meanwhile, Quantuma Director Philippa Robinson, Manager Richard Hill and Assistant Manager, Darra McCarthy-Paul, also worked to realise the deal.

Robinson remarked, “It has been a pleasure working alongside the ABC team on this transaction. The shareholders were keen to ensure that their loyal staff could be a part of the company’s future and selling into an EOT structure has allowed them to do just that. I wish the team and the exiting shareholders all the best in the future and I look forward to seeing how the business grows.”