Founded in 1870, Stewart Buchanan Gauges is based in Kilsyth and manufactures specialist valves and gauges. Employing over 150 people, the firm is recognized as one of the leading manufacturers in its market and exports to 50 countries.

1. Founded in 1870, Stewart-Buchanan Gauges is based in Kilsyth
and manufactures specialist valves and gauges. The 42,000 square feet
manufacturing plant features the latest state of the art 3D design,
CNC machinery and manufacturing techniques. Employing over
160 people, the firm is recognized as one of the leading manufacturers
in its market and exports to 50 countries.
Stewart-Buchanan Gauges
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2. Co-operative
Development Scotland
27 Causeyside Street
Paisley PA1 1UL
www.cdscotland.co.uk
Scottish Enterprise
Atrium Court
50 Waterloo Street
Glasgow G2 6HQ
www.scottish-enterprise.comSE/3983/Mar14
Co-operative Development Scotland is the arm of Scottish
Enterprise working in partnership with Highlands and
Islands Enterprise that supports company growth through
collaborative and employee ownership business models.
For more information or advice on employee ownership,
email info@cdscotland.co.uk or call us on 0141 951 3055.
Follow us on Twitter @cdscotland
MAIN BUSINESS
Design and
manufacture of
specialist valves
and gauges
ANNUAL
TURNOVER
£10.6m
NUMBER OF
EMPLOYEES
160
Stewart-Buchanan
Gauges Ltd
Burnside Ind Estate
Kilsyth
Glasgow
Scotland G65 9JX
Tel: +44 1236 821533
Fax: +44 1236 824090
www.stewarts-group.com
Stephen Nicol, Managing Director, Stewart-Buchanan Gauges
“We have a good loyal workforce with virtually no staff turnover.
Now the uncertainty of a potential future sale has been removed and
we can all focus on making the business as successful as it can be,
and enjoy the benefits of that success”.
THE CHALLENGE
As Frank Phair, who had led the company for
42 years, approached retirement, he considered
his succession options. He had received several
offers for the business, mainly from international
firms. A trade sale would almost likely lead to
a relocation of the business, and as 85% of the
workforce live within 5 miles of the company,
this was a route Frank did not want to take.
Frank sought an exit route that would
secure the future of the business in the local
community and create a structure that would
enable future growth.
THE SOLUTION
With the support of Co-operative Development
Scotland (CDS), he explored selling to the
employees, and decided this was the best way
forward. Stewart Buchanan Gauges moved into
employee ownership in December 2011.
DEAL STRUCTURE & OWNERSHIP
The company opted to implement a hybrid
ownership model combining trust and
individual shareholding. Frank sold his shares
to an Employee Benefit Trust (EBT), taking the
payment for this over a 10-year period. This
suited Frank and his family, and meant that the
company was not burdened with debt in the
initial years. A Share Incentive Plan (SIP) was
introduced and 97% of employees participate
in the plan.
GOVERNANCE &
EMPLOYEE ENGAGEMENT
Frank Phair took on the role of chair following
the deal, Stephen Nicol, formerly Operations
Director, became Managing Director. The family
has retained seats on the board until the funding
period concludes.
THE IMPACT
Turnover has grown 43% since the buyout and
the share price has increased well beyond the
level of other investment alternatives.
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