TwoTwenty employee ownership secures ‘perfect future’

Derbyshire-based staircase manufacturer TwoTwenty has announced its sale to an employee ownership trust (EOT). The transition of TwoTwenty, along with its holding company Elephant Holdings, to a business that is 100% employee-owned is believed to be the first such deal in the UK timber engineering sector and secures the jobs of 40 staff.

No funding or contributions have been required from any employee to fund the purchase of the business by the EOT, and under the terms of the deal, all staff are expected to benefit from significant tax-free bonuses in future years as well as deciding the company’s future strategy and growth plans. All the existing senior leadership team will remain closely involved in the business as trustee directors.

Ali Wright, founder of TwoTwenty, will become chair of the EOT, saying: “We passionately believe that our colleagues are the thing that make TwoTwenty successful, so becoming an EOT secures the perfect future for this business. As a small business, in reality we only have a few options for the next phase of growth. We did not want to pursue a trade sale as that does not secure the long-term future for our staff. We did not want to pursue an external investor or management buy-out because of the huge pressure and obligation it brings on future performance.

!We could not simply share the ongoing profits of TwoTwenty with our employees as that would make us unsaleable, and I certainly couldn’t imagine exiting by just closing down such a strong and vibrant company. In effect, we are a family business whose employees are not related, so to create an EOT resonates with every value we have ever aspired to. It creates a legacy for us, provides security for all the staff, and allows us to handsomely reward every employee for the hard work and effort they put in.”

Steve Chapman, director at TwoTwenty, commented: “The Employee Council will be the thing that really makes the magic happen. The engagement and ongoing buy-in of our staff will transform the ability of TwoTwenty to capitalise on the huge opportunities ahead. It also allows us to make a 10% pay rise for everyone and to introduce a new scheme that facilitates a minimum of 22.5% higher pension contributions for each employee. These commitments can genuinely change the lives of our employees and their families.”

According to the Employee Ownership Association, the benefits of companies becoming employee-owned include improved productivity and employee engagement and more resilient regional economies. There are now more than 1,000 employee-owned companies in the UK.

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