JJO plc has announced that on the 2nd of March 2021 they became an employee-owned business. The existing shareholders have sold 67% of the shares to a newly established trust, an Employee Ownership Trust (EOT).

JJO is now majority-owned by the ETO. with much of the consideration deferred over the next 15 years.

JJO claims to have a strong balance sheet, with robust track record of continuous profitability. It has been in the hands of the Greenhalgh family for half of its 150-year history. For some time the original owners have been succession planning, to look at the best way to take the company forward, and the latest decision was led by a desire to sustain the company’s independence and values, whilst recognizing the efforts of its employees and their massive contribution to JJO’s considerable success.

Whilst infrastructure has been vital to this success, the real driver has been JJO people. Over 50% have been with the company for ten years or more, and 70 have amassed at least 2 decades of service. There are numerous examples of multiple members of the same family working for the business. That level of commitment means that the JJO community is truly invested in the ongoing success of the company – and is always prepared to go the extra mile. 

Stephen Greenhalgh MD says: “Although Gill and I remain committed to the business we realised that the next generation are many years away from acquiring the skills to operate such a large and complex operation. So there was no natural exit strategy. Involving private equity was not something we wanted to consider. A trade sale, whilst attractive for shareholders, would not have guaranteed jobs for our brilliant team or ensured that our Father’s legacy lives on. Following professional advice it seemed an Employee Ownership Trust would provide a ‘best of both worlds’ solution – safeguarding the continuity of the business and enabling the shareholders to extract some value (whilst maintaining an ongoing stake) as well as securing the future well-being of JJO’s extended family.”

Key benefits of the EOT
•             Business continues as usual
•             Upholding the heritage and culture of the business
•             Increased productivity through employee engagement
•             Average growth of 28% for EOT businesses
•             Employees have a say in how the business is run

Joint Managing Director Lee Greenhalgh (who joined the company in 1977) will be stepping back from day-to-day involvement, however the existing executive board will remain in place for the medium term with Lee adopting a non-executive role in the longer term. “It will be business as usual but better – no deviation from the JJO ethos and unswerving pride in delivering products customers want, when they want them.”  Stephen Greenhalgh

To find out more about JJO, visit https://jjoplc.com/