Leading supplier of innovative groundwork products transitions to employee ownership
A Wickford-headquartered manufacturer and supplier of steel reinforcement and prefabrication products has become employee-owned, in a transaction supported by FRP Corporate Finance.
Established in 1978, Lemon Groundwork Solutions (LGS) specialises in providing groundwork materials to a range of residential, commercial and infrastructure construction projects across the UK. 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 £50m
The sale to an employee ownership trust (EOT) ensures LGS will maintain its existing collaborative culture whilst enabling the management team to incentivise all staff on the next stage of the company’s 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.
A team at FRP Corporate Finance, led by partner Jon Dodge and including director Matt Field and associate director Alex Hunton, advised the business on the sale to the 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 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 on LGS’ latest growth 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 forward on the next stage of its growth journey.
Kevin Childs, executive chairman at Lemon Groundwork Solutions, said: “LGS has been a specialist supplier of steel reinforcement and groundworks products for over 40 years, 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 we received from the FRP Corporate Finance team ensured the sale was completed incredibly efficiently, and the team was instrumental throughout in providing helpful and essential advice at every stage of the process.”
FRP Corporate Finance worked closely with Birketts (legal) in completing the transaction.
