Staff shift gear to buy their car dealership
16 November 2022
Castleford-based Peugeot dealership Peter Ambrose (Castleford) Limited has transitioned to become an employee-owned business.
It changed hands after Peter Ambrose, founder and joint shareholder, sold the firm to the newly formed Peter Ambrose (Castleford) Trustee Limited – an employee ownership trust. (EOT)
Ambrose established the business in 1999 and it has grown substantially over the past 23 years. On average it sells 1,300 vehicles each year and has an annual turnover of around £25m.
He said: “It’s a very exciting time for the company with lots of opportunities as we move into a new age that will be more and more dominated by electric and hydrogen vehicles.
“I knew I was going to sell the business one day, but I wanted the structure to be right and the option of creating an EOT really appealed to me.
“We’ve always put our people at the heart of our operations so this option felt like a natural transition as the business will remain in the hands of those who have made it what it is.
“I originally bought the company from Peugeot 22 years ago under a management buyout scheme so it feels like we’re coming full circle as the employees will have a similar opportunity to further grow the business for the benefit of our customers as well as current and future staff.”
Jane Parry, managing partner and head of tax at PM+M, and Jonathan Cunningham, manager in the tax team at PM+M, provided tax and transaction advice to the company, the shareholders and the trustees of the new EOT.
Parry said: “EOTs are an increasingly appealing option, offering many benefits for both the business and its employees.
“We were pleased to play our part in helping the business transition to employee ownership and we very much look forward to seeing it flourish under its new ownership.”
Muckle LLP partner, Adam Rayner, led on the main legal aspects of the deal including the establishment of the EOT as well as advising the Ambrose family on the sale of the business to the trust.
He was supported by Julie Garbutt, partner in the private client team, and Hayden Richards, corporate solicitor.
Rayner said: “We were happy to act for Peter and help with the continuation of the successful business in its new chapter under employee ownership.
“This is a fantastic step for the company, and I look forward to witnessing its continued growth. We wish Peter, the business and all its employees every success in the future.”
Brabners provided additional legal advice for the Trustees, whilst Tony Tinker of TT Business Services Ltd delivered accounting support.