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EMW advises management on sale and investment in food supplier Whitworths

EMW, the commercial law firm, has advised Whitworths senior management on the offer to them to subscribe for employee shareholder shares.

 
EMW says that the deal is believed to be one of the first deals to take advantage of the new employee shareholder status which became available from 1 September.
 
Under the terms of the deal, the senior management team are being offered equity in Whitworths, which will (subject to certain conditions being met) be exempt from capital gains tax, making the shares more attractive to employees.
 
Ian Morris, the EMW principal who led the deal for management, says: “Any measure that encourages broader employee ownership of shares is to be welcomed. It benefits the employees who get granted the shares and helps to align their interests more closely with those of company’s other shareholders.”
 
Based in Irthlingborough, Northants, since its foundation in 1886 by brothers John, Herbert and Newton Whitworth, Whitworths is a supplier of dried fruit, nuts and seeds, and breakfast, baking and cooking products.
 
Whitworths’ household-name products include Frootz fruit buttons, Great Scot grains and flours, and Sunny Raisins.
 
The deal is backed by private equity firm Equistone Partners Europe. The transaction values the company at GBP90m.
 
Morris says: “These new regulations are intended to promote wealth creation and incentivise employees to grow the businesses they work for.
 
“We’re delighted that this deal, which has overcome the difficult funding environment, will allow what is already a household name business to enter the next stage of its growth.”
 
EMW’s team was led by Morris and associate Gurpreet Sanghera. SJ Berwin acted for the vendors including European Capital, while Eversheds acted for Equistone Partners Europe.

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