Pennine Healthcare, the privately-owned medical manufacturers, has paid ownership of the company to the 200 employees.
Pennine Healthcare, which has operated in Derby for more than 50 years, has joined the growing gang of companies setting up an Employee Ownership Trust (EOT).
The privately-owned company continues to be sold to the EOT for an undisclosed sum that's below its market value to ensure maximum benefit for the employee shareholders moving forward.
The Trust, which represents the interests from the company employees, now holds 100% from the Pennine Healthcare’s shares.
All employees with at least 12 months’ service now have the chance to each receive up to £3,600 tax free dividends from annual net profits.
Pennine Healthcare, working in london Road, specialises in manufacturing single use, sterile medical devices and customised procedure packs for the NHS and the wider healthcare sector both in the UK and 80 countries worldwide.
The current operations board, led by CEO Luke Fryer, continues to manage the company – reporting to the EOT.
Elizabeth Fothergill CBE, who is HM Lord-Lieutenant of Derbyshire and whose father Ivor Shaw set up the company in the sixties, has retired from the operations board to become a person in the EOT which hold shares with respect to the employees and will distribute the dividends equally.
She explained that the driving force behind the announcement ended up being to ensure that Pennine Healthcare remained in Derby, recognised employees for his or her hard work and effort and retained capital in the business.
Mrs Fothergill said: “The success of Pennine Healthcare today is due to the skills and commitment of our employees and I am delighted that we have taken the EOT route to go ahead and take company to the next chapter.
“Selling the organization to our employees through the EOT will ensure that Pennine Healthcare remains rooted in Derby and continues to create and retain skilled and valued jobs and careers for residents.
“Everyone will take an equal share of the significant proportion of net profits generated which recognises the important part that each individual plays within the the success of the company.
“Furthermore, this new structure enables investment in the company’s future in line with our long-held vision to be a world-class UK manufacture of healthcare products, serving global markets through exceptional customer support, innovation and continual improvement.”
CEO Luke Fryer, who joined Pennine Healthcare seven years ago, continued: “We had been looking to market the company to take it forward but decided this was the best option for the future of Pennine Healthcare and our workforce.
“Establishing the Employee Ownership Trust will let the company to continue to operate in Derby and can pave the way for new product development and growth.
“Yesteryear year has been full of challenges due to the pandemic but everyone has increased to the mark to keep the NHS going.
“For example, we are the sole supplier of oxygen tubing to the NHS in England and pre-pandemic produced 3kms per month of this product. In recent times, we have manufactured 20kms of oxygen tubing a month which has been so vital in treating Covid-19 and other clinically vulnerable patients.”
The move has been welcomed by the workforce including those with several decades service to the company.
Andrea Robinson joined Pennine Healthcare a lot more than 15 years ago – starting focus on the shopfloor. Now Head of UK Sales, Andrea said: “Pennine Healthcare has always been a great place to work and feels like one big family with everyone dedicated to playing their part in the company.
“What is the news is the ultimate recognition that we are all truly valued and there is a terrific buzz across the whole company. Although it will be good to have the opportunity for annual dividends, I understand that it will encourage everyone to take far more interest in what we do and how well we do it.
“It is the chance of us all to become far more engaged in how we can make the best products and supply a top quality service for our current and new customers both in the UK and across the world.”
E-commerce manager Dan Wilson added: “I’ve only been at Pennine for nine months and, in that time, I’ve become a manager and added new members to the team. The ownership news is definitely an amazing opportunity for everyone at Pennine, even those that are relatively new to the business. Really exciting times ahead!”