TLT advises Scottish steel company on sale to employee ownership trust

Law firm TLT has provided guidance to Alexander (Scotland) & Co Ltd, a steel company that has been owned by a family, on its transfer of ownership to an employee ownership trust. For 75 years, Alexander (Scotland) & Co Ltd has been catering to customers throughout Scotland. Initially established in Stirling, the company has flourished over the years and now has a workforce of forty individuals and operates a second branch in Bathgate.

The company opted to transition to an employee-owned model, granting all its employees a full stake of 100% by establishing an employee ownership trust (EOT). This move was prompted by the owner, Glenn MacLachlan, who aimed to secure the future success of the business even after his retirement.

TLT provided guidance and support to the company throughout the sale process, ensuring that all legal matters were properly addressed. This included assisting in the formation of the Employee Ownership Trust (EOT) and transferring the shares to the trust. The transaction was overseen by Douglas Roberts, a corporate partner at TLT, with assistance from Nimarta Cheema, a managing associate. Ralph Leishman from 4-consulting offered advice on employee ownership and facilitated communication with the employees.

Glenn MacLachlan, ex-proprietor of Alexander (Scotland) & Co Ltd, said: "Forming an EOT has met many requirements for the continuation of the company. It has not only ensured the business's durability, but also empowered and incentivized the individuals who played a crucial role in our initial triumph. Douglas and Nimarta's expertise in employee-owned enterprises in Scotland proved vital in securing this advantageous result for both the company and its employees."

Douglas Roberts, a colleague at TLT, expressed his satisfaction in assisting Glenn with the transfer of his beloved family company to an employee ownership trust. He eagerly awaits the growth and success of Alexander (Scotland) as an employee-owned enterprise. It has been observed that the interest in employee ownership in Scotland has risen since the start of the pandemic. This increase is thought to be because business owners are now contemplating the future of their companies as they approach retirement. Employee ownership trusts have the remarkable ability to unlock the potential of Scottish businesses. Adopting the employee ownership model has proven to yield outstanding results for both businesses and their employees. It is truly wonderful to be able to support another prosperous Scottish company in implementing this model.