CDS supports Galloway and MacLeod employee buyout

Galloway and MacLeod, the 138-year-old agricultural merchant, is completing an employee buyout with specialist support from Co-operative Development Scotland (CDS), the Scottish Enterprise subsidiary.

The move will see ownership of the South Lanarkshire-based business, which specialises in supplying animal feed and fertiliser, transfer to its 31 staff.

Managing Director Ralph MacLeod was inspired by a CDS event on employee ownership after being introduced to the agency by the company's Scottish Enterprise account manager. A specialist CDS adviser worked with the management team to assess the feasibility of an employee buyout and explain the process. CDS then facilitated an introduction to Baxi Partnership, the UK’s leading employee ownership investment vehicle, and helped to fund Baxi's project management support.

"I have always believed that business is about people," said Ralph, who was also inspired by David Erdal’s book Local Heroes, detailing Loch Fyne Oysters' journey into employee ownership. “What we have here is unique – a management team that all started at the chalk face, a diverse product portfolio, innovative animal feed manufacture and proactive customer relationships. Now, the team who has spearheaded current business development will take over the reins for the benefit of all employees, customers and suppliers."

Mr MacLeod will be remaining with the business as Chairman and believes strongly that employee ownership will be the key to delivering ambitious growth plans for the business going forward.

Chief Executive of CDS, Sarah Deas, said: “Employee ownership is the beginning of a new chapter in a company's life, allowing it to grow and prosper under the direction of those who know it best - the employees. Giving staff a stake in the business generally leads to increased productivity, innovation and sustainability. We are delighted to have played a key role helping Galloway and MacLeod become Scotland’s latest employee-owned business, and wish the company every success for the future."

During the last year, CDS has also helped advise employee buyouts including that of West Highland Free Press, the campaigning Isle of Skye newspaper founded in 1972, and the £2.2m employee buyout of robotic handling specialist Clansman Dynamics, based in East Kilbride. CDS has seen a 350% increase in enquiries over the last two years and is advising 250 potential new co-operative or employee-owned businesses in the current year.

John Alexander, director at Baxi Partnership said: “Galloway and MacLeod is a successful business, with a long history in an area which is dependent on the rural economy, which means maintaining jobs, skills and experience is vital. By transferring the company to its employees, the MacLeod family is securing their future and enabling them to benefit from Galloway and MacLeod’s future growth.”

Galloway & MacLeod was incorporated in 1923 but can trace its roots back to 1872. Based in Stonehouse, it is now a multi-million business supplying customers across the UK and Ireland. Ralph MacLeod's family has been involved in the business for three generations.