A newly-formed employee ownership trust (EOT) has taken control of the highly successful Glyn Hopkin Group.
The Car Dealer Top 100 outfit made a pre-tax profit of £5.5m in its most recent annual accounts and would likely have been an attractive proposition for overseas investors.
However, bosses have decided to sell the Romford-based outfit to its 800-strong workforce, following the creation of a new EOT.
The financial details of the deal have not been revealed but directors say the move will allow the company to ‘maintain focus on its growth strategy’.
It is also hoped that by keeping the ownership in-house, the dealer group will be able to retain its ‘long-term legacy, ethos and core values’.
Fraser Cohen, CEO at Glyn Hopkin Group, said: ‘We are really pleased with the new ownership structure, which recognises all of our staff in the business, who have contributed for many years to the ongoing success of Glyn Hopkin with numerous staff having worked for 5, 10, 15, 20, 25 and even 30 years of continuous service.
‘The EOT structure now further rewards all of those efforts going forward.
‘We are grateful for the invaluable advice all of the advisors provided with a special mention to consultant Sharon Stemp who was instrumental in bridging all the parties, with her knowledge of the sector and banking experience, to enable a successful outcome, so much so we have now welcomed her on to the Glyn Hopkin board as a non-executive director.’
The new deal was supported by accounting experts Grant Thornton UK and solicitors Howes Percival.
Grant Thornton partner Mike Tillson said: ‘While facilitating an exit path strategy in future years for the shareholders, this EOT deal provides consistency for the group, its customers, OEM partners and staff – with the business continuing to be led by its existing leadership team.
‘The group’s stakeholders can be assured that the highest standards of service, which Glyn Hopkin is renowned for, will be maintained.’
Andy Harris, of Howes Percival, added: ‘Having worked with this leading dealer group for a number of years, it was a pleasure to help steer Glyn Hopkin into its next chapter.
‘EOT transactions like this are unique in achieving the sort of phased exit that is often important to founders of a longstanding business while at the same time preserving operational continuity.’
8:31 am, July 11, 2024
