R&W Scott Transition to an Employee Ownership Trust

• R&W Scott is a UK-based manufacturer, specialising in branded and own label products for the retail, food service, and wholesale sector.
• Recognising the contribution its employees made to the success of the business, management at R&W Scott decided to transition to an Employee Ownership Trust (EOT), enabling staff to influence the company’s future direction also.
• R&W Scott’s management team opted to secure external funding to fast-track the EOT and Shawbrook delivered a hybrid facility to support the transition and further growth

Lanarkshire based premium bakery and confectionery ingredients supplier R&W Scott is operating under an Employee Ownership Trust (EOT), following funding from Shawbrook to fast-track this transition.

Under this new structure, all the company shares will have been acquired by the EOT for the benefit of its employees – allowing R&W Scott staff to participate in and influence the company’s future direction, without having to directly own or buy shares.

R&W Scott’s current leadership team bought the 144-year-old business through a Management Buy Out (MBO) in 2018 and have successfully delivered on their 5-year growth plan. The business has now introduced the new EOT structure to sustain independence and to recognise that R&W Scott’s success was built upon the hard work and commitment of its employees.

“Many businesses in our sector are acquired by larger competitors or outside investors as they grow. To safeguard employment here and continue to deliver sustainable growth, we’ve created the R&W Scott Employee Ownership Trust,” commented Clare McNeil, Commercial Director of R&W Scott.

“Since we bought the business in 2018, we’ve delivered year on year growth, and our plan is to maintain that trajectory for the long-term benefit of our employees”

Operationally R&W Scott’s senior leadership team, including Stephen Currie, managing director, Clare McNeil, commercial director, and Michael Hewitt, finance director, will continue to oversee the day-to-day operations. John Easton will exit the business but will hold a position on the Trust board representing the outgoing shareholders.

R&W Scott’s management team opted to secure external funding to speed up the EOT transition and was introduced to specialist bank, Shawbrook by advisors, HNH Group. Shawbrook is providing a hybrid funding facility, combining asset-based lending with a property and cashflow loan to support the acquisition from the original owners and assist with R&W Scott’s continued growth plans. 

Nathan Burn, New Business Analyst at Shawbrook said,

 “As more and more business owners consider succession planning and retirement exits, EOTs have become a more prevalent option in the market. and we have supported a wide range of organisations with funding to fast-track these transitions. We are delighted to be working with Michael and the team at R&W Scott with funding for their EOT and look forward to seeing the business grow as it progresses through this exciting stage of its journey.”