Press tooling manufacturer transitions to employee ownership

Birmingham-based APS Metal Pressings has been sold to an employee ownership trust (EOT) in a deal led by PKF Smith Cooper.

Now recognised as a world leading manufacturer of press tooling products, the business was originally established by Philip Smith in 1970, before his brother David joined the partnership a few years later.

Fast forward more than 50 years, and the day-to-day operations of APS are now overseen by Philip’s two sons Paul and Andy, who are keen to affect a controlled transition of their responsibilities to the next tier of management, as part of a wider succession plan for the business.

The EOT concept was born out of a government-backed initiative, designed to promote employee ownership, by giving all employees a significant and meaningful indirect stake in the business, including a say in how it is run.

The PKF team comprised tax partner Adam Rollason and Tax manager Nick Skidmore, who provided tax structuring advice on the deal, and sell-side tax support to each of the selling shareholders.

Commercial structuring advice was provided by Corporate Finance partner Darren Hodson, with specialist valuation advice provided by Transaction Services director Tom Sinden.

Paul Smith, managing director of APS, commented: “Securing the long-term future of the business for the benefit of our employees has always been a critical part of our succession plan, and I am confident that the timing is now right to begin the transition to employee ownership.

“I am incredibly proud of what we have achieved over the past 55 years, but I am equally excited for what it is to come under the stewardship of the next generation of management.

“We would like to thank the team at PKF Smith Cooper for the advice and support they provided throughout the process, which was instrumental in getting this transaction done.”

Adam Rollason commented: “It was a pleasure to advise Paul, Andy, and their fellow shareholders on this transaction.

“It is clear for all to see that the foundations of APS were built upon strong family values, and I have no doubt that this will remain unchanged under the new ownership structure.”

Other advisers on the transaction included Gary Davie, Jane Jevon, and Christina Conlon of Legal Clarity, who provided buy-side legal advice to the trustees of the EOT.

Pictured (L-R): Adam Rollason and Nick Skidmore