Our FRP Corporate Finance team has advised a Wickford-headquartered manufacturer and supplier of steel reinforcement and prefabrication products on becoming employee-owned.
Established in 1978, Lemon Groundwork Solutions (LGS) specialises in providing groundwork materials to a range of residential, commercial and infrastructure construction projects worldwide. LGS’ materials have been used in the construction of major projects including Kensington Palace Gardens, Chelsea FC Training Academy, the London Olympic village, and Wembley City.
The business – which has a workforce of more than 100 employees and additional bases in Rugby, Warwickshire and Rochford, Essex – has grown rapidly, and now has an annual turnover of close to £50 million.
The sale ensures LGS will maintain its existing collaborative culture, whilst enabling the management team to incentivise all staff on the next stage of the journey.
The transition to employee ownership follows a period of strong growth for LGS, which has seen its offering evolve and enjoy a significant expansion of its client base following a partial management buy-out in 2016.
Our team at FRP Corporate Finance, led by Partner Jon Dodge and including Director Matt Field and Associate Director Alex Hunton, was appointed lead advisers to structure the deal, provide financial modelling, prepare a comprehensive business valuation, and submit the relevant tax clearances to HMRC. The team successfully advised the business on the establishment of the firm’s new employee ownership trust (EOT) following a strategic review of multiple succession options available to the owners.
Commenting on the deal, Jon Dodge, Partner at FRP Corporate Finance, said: “Having initially supported LGS on its partial management buy-out in 2016, we’ve seen the firm go from strength-to-strength. It’s a true testament to the quality and ambition of the leadership team and its entire workforce.
“We’re proud to have advised Lemon on achieving its’ latest milestone, which will maintain the well-established culture of the business, cement its position as an employer of choice and empower its teams to drive the business forwards on the next stage of its growth journey.”
Kevin Childs, Executive Chairman at Lemon Groundwork Solutions, said: “Over the last five decades, we have established Lemon as a go-to supplier of groundwork solutions, and we employ an exceptional team of specialists in their field.
“We’re committed to creating a working environment that promotes employee loyalty, and our move to employee ownership will do just that – by allowing our teams to be even more invested in the future growth of the business. The support of the FRP Corporate Finance team ensured the sale was completed incredibly efficiently, and the team was instrumental throughout in providing helpful advice at every stage of the process.”
Industrials & Manufacturing
Selling a business
We’re proud to have advised Lemon on its’ latest growth milestone, which will maintain the well-established culture of this vibrant business.Jon Dodge Corporate Finance