Target Components has transferred majority ownership of the business to its 60 employees as the distributor moves to become an employee-owned trust (EOT).
Targets employees now own the majority of the distributor’s shares, and an employee representative will be appointed to the EOT board.
Documents related to the sale of the business by former MD, Paul Cubbage, and owner Ian Prescott were signed last week, marking the beginning of Target as an employee-owned business.
Target’s board will continue to manage the company, led by managing director Michael Lawrence, who replaced Cubbage last year after he moved to a non-executive director position.
Cubbage said that the move will protect its staff from potential takeover approaches. Now a takeover could only go ahead if it’s in the best interest of the employees, and, if it does, staff will all get a share of the deal.
Cubbage and Prescott will each retain a 10 percent stake in the business as part of the ownership change.
“We have exciting plans for Target and the change in ownership is a significant milestone for us. The commitment, innovation and attitude of the team at Target have underpinned our successes and it’s fantastic for them to have an even greater stake in the future development of the business”.
Cubbage added: “Selling the company to the employees through the creation of the EOT ensures the stability of the business for the long-term and supports our desire for further growth. This move recognises the value that the Target team have delivered over the years and the pivotal role each individual will play as the business progresses under its new leadership.”
Target Components reached revenues of £40 million in 2020 and is projecting £50 million for its full-year 2021.
