Manchester-headquartered logistics services business Cardinal Global Logistics has transitioned to an employee ownership model to mark 25 years in business.
The business, which employs more than 400 employees, aimed to create an environment where every member of staff has the same opportunity to become a partner in its democratisation model, sharing in the profits it generates each year.
Cardinal Global Logistics also wanted to give employees an increased sense of ownership over their roles, a direct stake in the overall success, and input regarding the direction and future of the business through open and transparent communication channels.
According to the employer, the move to employee ownership represented an active effort to preserve an employee-first culture established over the past 25 years. The culture has helped create a more engaged, motivated and innovative workforce, while also benefiting sustainability and viability in the longer term.
Brian Hay, chief executive officer of Cardinal Global Logistics, said: “Our decision to become an employee-owned business will be transformational. We believe that excellence and dedication should be rewarded, and we have some of the most talented operators in our industry.
“During our first 25 years as a business, we have been able to take the organisation from a £15,000 investment to one of the UK’s most respected and sizable logistics businesses. Undoubtedly, this transition will allow us to take our business to the next level and I’m looking forward to what’s to come.”
Cardinal worked with investment banking firm Houlihan Lokey on a liquidity event for shareholders when establishing its employee ownership trust.
Gareth Owen, capital markets director at Houlihan Lokey, added: “Cardinal is a great example of delivering strong growth whilst maintaining its core values. We have thoroughly enjoyed working closely with management on this transformational step in its history and look forward to watching the next phase of their journey.”