Essex MDF profiles manufacturer Universal Wood Products (UWP) has been sold to an Employee Ownership Trust as it looks to the future.
Martin Cossington, managing director, told TTJ that the transaction had all the management and factory staff on board and was good news and considered the best option for the future of the business whilst keeping the ethos and incentives for present staff and management.
UWP was established 111 years ago and produces skirtings and architraves, window boards, door linings, architrave blocks and plinths, and custom architectural MDF mouldings.
“Once the decision was taken and in agreement with all shareholders, the process was efficient and very positive with the assistance of RVE Corporate Finance acting as independent advisors to submission and completion,” Mr Cossington said.
“What a great future now lies for the benefit of all the staff with a history to the business of over 100 years. I am really pleased to see the legacy of the business continue into the future, with all the management and staff knowing their futures are secure and our customers can continue to have confidence in both the product and service that UWP are known for.”
Mr Cossington said the sale to the trust stemmed largely from his plans to retire. He has been MD for 10 years and a major shareholder and director for the past 30 years. He has worked for the company for 40 years in total.
UWP has seen several ownership changes in its history. Established in 1915 as a company representing the interests and sales of Swedish timber products – specifically matches and panel products for the then parent company Swedish Match – Universal was also owned by timber agents Bech Neale & Co.
UWP was purchased by the management in the late 1980s and continued representing many European producers of wood-based panel products for many years. Selling to the importer/merchant and major user markets continued through 1980s and 1990s.
Major investment saw the company produce its own line of primed MDF profiles from 1990. Further investment in the past three years included new Homag machining technology and a Talbott’s waste management system.
Mr Cossington plans to remain on board for a while, assisting on a day-to-day basis.
“Selling the business at this juncture to the employee trust really gives the team a great springboard,” he said.
“We have been pleased to have the support of our merchant client base for over 30 years plus many major joinery manufacturing customers who like the flexible and prompt service we bring to the market.
