Drill bit manufacturing firm becomes employee owned

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A South Yorkshire manufacturer and supplier of premium quality power tool accessories, drill bits and tools has become an employee owned business.

Sheffield-based Armeg Ltd, established in 1973, designs and manufactures high-performance, premium quality power tool drilling accessories for professionals and is synonymous with smart design, enduring quality and trusted performance.

Armeg has been sold to the newly-formed Armeg Employee Ownership Trust.

The move is set to enable the company's 55 employees to share directly in the company's success and future growth strategy and will mean business as usual for the firm with the current directors continuing to manage the company's operations to bring through a new generation of management.

The new ownership model, established through an employee ownership trust (EOT), ensures each employee becomes a beneficiary of the trust. Advisors included Sheffield’s Wake Smith Solicitors on legal matters and accountancy practice Shorts for corporate finance and tax advice.

MD John Mowthorpe, who owned the business with Charles Pugh, said: “Armeg has been a Sheffield-based, independent drill bit manufacturing specialist for over 51 years. During that time, it has enjoyed its independent status and benefited from a set of values that have allowed it to thrive over that period.

“In order to sustain that status and continue to deliver those benefits for its colleagues and customers, the current ownership has formed Armeg EOT Limited and sold its entire shareholding to the EOT.

“There are no immediate changes planned to either the management team or board structure at Armeg Ltd. It is very much business-as-usual, and the sale has been designed to deliver seamless management and leadership continuity for years to come.

"The change in ownership will allow a structured future shift in leadership under the careful management of the EOT’s board of trustees.

“I am delighted that we have completed the sale which I am convinced will ensure Armeg’s longevity as an independent and successful manufacturing company. Placing colleagues’ welfare at the heart of our operations and fulfilling customer needs as our primary purpose, will ensure Armeg’s continued success.”

Armeg’s range includes Impact Masonry drill bits, sheet steel Holesaws, a broad range of screwdriving products, and tools designed to work in a variety of materials and is the UK’s only manufacturer of SDS plus hammer drill bits.