Founded in 1870, Stewart-Buchanan Gauges is based in Kilsyth and manufactures specialist valves and gauges. The 42,000 square feet manufacturing plant features the latest state of the art 3D design, CNC machinery and manufacturing techniques. Employing over 160 people, the firm is recognized as one of the leading manufacturers in its market and exports to 50 countries.

Stewart-Buchanan Gauges

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Co-operative Development Scotland27 Causeyside Street Paisley PA1 1UL www.cdscotland.co.uk

Scottish EnterpriseAtrium Court 50 Waterloo Street Glasgow G2 6HQ www.scottish-enterprise.comSE/3983/Mar14

Co-operative Development Scotland is the arm of Scottish Enterprise working in partnership with Highlands and Islands Enterprise that supports company growth through collaborative and employee ownership business models.

For more information or advice on employee ownership, email info@cdscotland.co.uk or call us on 0141 951 3055. Follow us on Twitter @cdscotland

MAIN BUSINESSDesign and manufacture of specialist valves and gauges

ANNUAL TURNOVER£10.6m

NUMBER OF EMPLOYEES160

Stewart-Buchanan Gauges Ltd Burnside Ind Estate Kilsyth Glasgow Scotland G65 9JX

Tel: +44 1236 821533Fax: +44 1236 824090www.stewarts-group.com

Stephen Nicol, Managing Director, Stewart-Buchanan Gauges

“We have a good loyal workforce with virtually no staff turnover. Now the uncertainty of a potential future sale has been removed and we can all focus on making the business as successful as it can be, and enjoy the benefits of that success”.

THE CHALLENGEAs Frank Phair, who had led the company for 42 years, approached retirement, he considered his succession options. He had received several offers for the business, mainly from international firms. A trade sale would almost likely lead to a relocation of the business, and as 85% of the workforce live within 5 miles of the company, this was a route Frank did not want to take.

Frank sought an exit route that would secure the future of the business in the local community and create a structure that would enable future growth.

THE SOLUTION

With the support of Co-operative Development Scotland (CDS), he explored selling to the employees, and decided this was the best way forward. Stewart Buchanan Gauges moved into employee ownership in December 2011.

DEAL STRUCTURE & OWNERSHIP

The company opted to implement a hybrid ownership model combining trust and individual shareholding. Frank sold his shares to an Employee Benefit Trust (EBT), taking the payment for this over a 10-year period. This suited Frank and his family, and meant that the company was not burdened with debt in the initial years. A Share Incentive Plan (SIP) was introduced and 97% of employees participate in the plan.

GOVERNANCE & EMPLOYEE ENGAGEMENT

Frank Phair took on the role of chair following the deal, Stephen Nicol, formerly Operations Director, became Managing Director. The family has retained seats on the board until the funding period concludes.

THE IMPACT

Turnover has grown 43% since the buyout and the share price has increased well beyond the level of other investment alternatives.

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