TLT advises UK Electronics on transition to employee ownership

UK Electronics, whose premises are in Royton, Oldham, specialises in the manufacture of high-quality electronic assemblies, providing a high quality, cost-effective service to customers who choose to outsource their PCB‚Äôs electronic design, manufacture, assembly and test requirements. 

Neil Carr and Ian Duckworth were a major part of the team that purchased the company in 2003 and helped support the development and expansion of UK Electronics by investing in people, skills, and the latest technology available. As the company celebrates its 40^th anniversary, the transition to the EO model reflects its market-leading culture, built on open communication between management and staff and a desire to work well together with customers and suppliers alike, for the benefit of all. 

TLT provided legal advice on all aspects of the creation of the employee ownership trust and the transfer of the UK Electronics group into employee ownership. The deal was led by corporate partner Douglas Roberts, supported by senior associate Nimarta Cheema. 

Neil Carr, director at UK Electronics said: ‚ÄúUpon deciding to step away from the business, it was extremely important to Ian and me to find a way to recognise the hard work and efforts of all the employees at UK Electronics who have been instrumental to its growth and success. We‚Äôre extremely grateful to the team at TLT who shared their employee ownership experience with us and helped us understand how it could work for UK Electronics.  We‚Äôve long had a policy of training junior staff on the job and promoting from within so the move to employee ownership is not only a way of retaining all our staff but also a way to continue our market-leading legacy and values. Douglas and Nimarta were able to guide us through from the inception of the trust, all the way through to sharing the news with our employees. We are very thankful for their support.‚Äù 

Douglas Roberts, corporate partner at TLT commented: “It was a pleasure to get to know Neil, Ian and their team and the business throughout this transaction and to help them achieve their goals. UK Electronics is ideal for employee ownership and the staff now have an amazing opportunity to maintain the success of the business. We have seen an increase in interest in the EOT model, reflective of business owners increasingly looking at succession models that will benefit both employees and the legacy of the company. I expect we will see many more companies selling to EOTs in the future.”

Holly Bedford and Dominic Lay of K3 Tax Advisory advised on tax matters, with corporate finance support from Stuart Lees and Susan Lees of Signia Corporate Finance.