Leading national construction company the Meldrum Group is celebrating a pivotal movement in its history as it moves into an employee-owned trust (EOT).
The move sees the business transferred to employees, whilst founder Dave Meldrum remains in post as group chief executive officer and trustee. Dave will also be joined by independent and employee-appointed trustees to oversee the business’s next stage of growth.
This announcement comes at a particularly strong time for the Meldrum Group, with the company reporting record-breaking profits of £1.9m in late 2023, opening its first office in Cambridge and even setting up a new business division to meet growing client demand: Meldrum Fire Engineering.
Dave was advised by lawyers in Muckle LLP’s corporate finance team. Sintons advised the EOT itself, and Azets provided specialist corporate finance and tax advice.
Setting the foundations
Dave Meldrum set up the business as a construction company in 2001, and it has grown exponentially in its nearly 25 years of operation.
The Meldrum Group now has locations in Gateshead, Teesside and Cambridge, employing over 220 people across seven different operating companies under The Meldrum Group umbrella. Through these companies, the Meldrum Group provide a fully integrated service that encompasses all stages of a building project, from planning and design through to civil engineering and construction.
Over the last 23 years, the Meldrum Group has built up an impressive roster of clients, with recent projects including local schools and hospitals and a Grade I heritage project for the Auckland Project.
The Meldrum Group is no stranger to expansion, having transitioned into a group structure over the last few years. What has remained the same over the years is the Meldrum Group’s ongoing commitment to its people and culture, making an EOT the obvious choice for ensuring its continued success.
Dave said: “At a time when the construction industry is fraught with uncertainty, one thing we wanted our people to be certain of is their future here. We have worked hard to create an outstanding people-first culture, so an EOT is the perfect way to progress that and ensure we are operating as ‘business as usual’ for our people, clients and suppliers”.
Cementing future success
Matthew Walsh, partner at Muckle, was the lead legal adviser to Dave, supported by corporate solicitor Atif Salim.
Matthew said, “This transition to an EOT demonstrates Dave and the management team’s commitment to maintaining yet evolving the excellent organisational culture at the Meldrum Group. It also recognises and rewards everyone’s contribution to the business’s success. This is such an exciting time for all involved, and we are delighted to have played a role in it. I look forward to seeing the business achieve even greater things in years to come.”
Dave said: “Having advisers that share our enthusiasm and commitment to people is so important. Much like The Meldrum Group, Muckle has its people at its centre, and this people-focused approach was apparent from the get-go. I always felt like the team had our best interests at heart and they worked very hard to ensure the best outcome for everyone.”
Adrian Dye, partner at Sintons and head of the firm’s corporate department, explained how Sintons advised Meldrum Group and the trustees on the structure and setting up the EOT.
Adrian said: “Sintons has advised the Meldrum Group for over 10 years now and, as a longstanding client, we have seen how the business puts its team members at the heart of its operations. As well as setting up the EOT, Sintons Trust Corporation, will act as a trustee, providing ongoing support as they begin this new chapter in Meldrum’s story.”
Azets provided specialist advice to the Meldrum group and the EOT. Advisers involved in the transaction included Oliver Williams, corporate finance manager, and Adrienne Paterson, associate director (transaction tax).
Oliver said: “It was an absolute pleasure to have provided support throughout the transaction and we’re excited to see the business go from strength to strength under EOT ownership. Dave’s desire to do the right thing by the business and its staff was clear in our deal structuring discussions and the EOT will preserve the company’s core values and focus on its people.