Leeds Galvanising Holdings Limited
A Yorkshire-based business which is one of the leading metal treatment specialists in the UK has become employee owned.
Leeds Galvanising Holdings Limited, through its wholly owned trading subsidiary, Leeds Galvanising and Powder Coating Limited (“LGPC”) has transferred its entire shareholding to its 80 strong workforce through an Employee Ownership Trust (EOT).
LGPC was established in 2009 by Michael and Simon Kelly as a small local galvaniser, growing organically to become what is described as the largest galvanising and powder coating plant in the north of England.
Under the stewardship of Simon Kelly the Leeds-based company has grown revenues from circa £6m in 2019 to £10.4m in 2023, differentiating itself as a premium offering in the market by diversifying and investing in its service offering.
Simon Kelly is remaining as managing director of the business following the EOT.
Top 10 UK accountancy Azets UK, with three offices in Yorkshire, provided deal advisory services and tax advisory services. Its team comprised corporate finance partner Tariq Javaid, tax senior manager Karen Sadler, corporate finance manager Richard Weston and corporate finance executive Patrick Cree. Joanna Jowitt and Emma Wilson at Mills & Reeve provided legal advice.
Simon Kelly, LGPC managing director, said: “LGPC has always been passionate about its people and they have been unswerving their loyalty and commitment to the business.
“This EOT is just reward for their hard work and talent and the key role that they have played in making LGPC the success it is today as the largest business of its kind in the north of England.
“Transferring the company into employee ownership also ensure its values and culture live on for the next phase of its growth and means that we can look forward to an existing future together.
“My thanks to go to Azets and Mills & Reeve for their advice and expertise throughout the process.”
Azets corporate finance partner Tariq Javaid said: “LGPC is a tremendous businesses which has built its success on high-quality expertise.
“It is well suited to employee ownership with a distinctive family culture and strong values as well as a deeply committed and highly experienced team of employees.
“It has been a privilege to work with Simon and assist in the transition of LGPC to an EOT ownership structure, which places the business in a confident position for future growth.”
LGPC specialises in shot blasting, galvanising, and powder coating. It is one of the few companies in the UK that can provide a combined dual coating service.
This has given LGPC a significant competitive advantage, with greater control of the production process to deliver a superior finish.
LGPC undertakes a wide variety of projects from fencing and balconies to ornate ironwork and construction steelwork, carving out a niche specialism in the architectural steel market.
The business is based at Albion Works, in Armley Road, Leeds. The site has been used in the production of machining and metalwork since 1859 and was where some of the first torpedoes were produced for Royal Navy.
Azets has three offices in Yorkshire, in Leeds, Bradford and York, where it employs 334 people.
An EOT structure enables a company to become owned by its employees through the creation of a trust which becomes the majority owner of the business.
EOTs can be an effective means of succession planning and a tax efficient alternative to more conventional exit routes for shareholders.
According to the Employee Ownership Association, there are 1,650 EOTs in the UK. Its manifesto of May 2024 reveals that EOTs deliver an average 20% performance increase and 43% revenue uplift.