Armeg Ltd becomes employee-owned

A South Yorkshire manufacturer and supplier of premium quality power tool accessories, drill bits and tools has become an employee owned business.

Sheffield-based Armeg Ltd, established in 1973, designs and manufactures high-performance, premium quality power tool drilling accessories for professionals and is now synonymous with smart design, enduring quality and trusted performance.

Armeg’s range includes Impact Masonry drill bits, sheet steel Holesaws, a broad range of screwdriving products, and tools designed to work in a variety of materials and is the UK’s only manufacturer of SDS plus hammer drill bits.

Armeg has been sold to the newly formed Armeg Employee Ownership Trust.

What does it mean for the business?

The move is set to enable the company's 55 employees to share directly in the company's success and future growth strategy and will mean business as usual for the firm with the current directors continuing to manage the company's operations to bring through a new generation of management.

The new ownership model, established through an employee ownership trust (EOT), ensures each employee becomes a beneficiary of the trust.

What the business had to say

MD John Mowthorpe, who owned the business with Charles Pugh, said:

“Armeg has been a Sheffield-based, independent drill bit manufacturing specialist for over 51 years. During that time, it has enjoyed its independent status and benefitted from a set of values that have allowed it to thrive over that period.”

“In order to sustain that status and continue to deliver those benefits for its colleagues and customers, the current ownership has formed Armeg EOT Limited and sold its entire shareholding to the EOT.”

“No immediate changes are planned to either the management team or board structure at Armeg Ltd. It is very much business as usual, and the sale has been designed to deliver seamless management and leadership continuity for years to come. The change in ownership will allow a structured future shift in leadership under the careful management of the EOT’s board of trustees.”

“I am delighted that we have completed the sale which I am convinced will ensure Armeg’s longevity as an independent and successful manufacturing company. Placing colleagues’ welfare at the heart of our operations and fulfilling customer needs as our primary purpose, will ensure Armeg’s continued success.”

How Shorts were involved

Shorts advised on corporate finance and tax matters relating to the transition, while Wake Smith Solicitors advised on legal matters.

Connor Marshall, Corporate Finance Senior Executive at Shorts, said:

“It has been great to assist John and Charlie in securing the long-term future of Armeg. This transition into an EOT ensures that the culture and legacy of the business continues, with no change in day-to-day company operations for customers or employees. The employees have always been at the core of Armeg and in John and Charlie’s thoughts throughout the process and it will be great to see them benefit from the business going forward.”