Credit and political risk insurance firm Texel Group has transitioned to an employee ownership trust (EOT) to secure its long-term independence and employee-led future.
The deal enabled Andy Lennard, founder, chairman and chief executive officer, and all other shareholders to sell their shares to an EOT.
Law firm Fieldfisher helped to structure the deal, led by partner Mark Gearing and senior associate Jessica Kilkelly, with support from partner Neil Palmer, director Jennifer Martin and solicitor Habibah Alao. UK regulatory advice was delivered by partner Simon Lafferty and senior associate Sam Clyndes, while senior associate Michelle Wu advised on real estate matters. Corporate tax advice was provided by partner Andrew Prowse and director John Tolman.
The transaction required change of control approvals from the Financial Conduct Authority and the Monetary Authority of Singapore. It also involved employees across offices in London, New York, Los Angeles, Brussels and Singapore.
The founder was advised by Mishcon de Reya, Pacific Tax Counsel provided US tax advice, while Incisive Law advised on regulatory matters in Singapore. Valuation input was provided by Grant Thornton UK.
Lennard said: “Transitioning to employee ownership via an EOT model aligned with everything we stand for at Texel, and Fieldfisher’s guidance was instrumental throughout the process. At a time when many businesses in our sector are being acquired by private equity, this move ensures that Texel remains independent, preserving our culture and values, and allowing us to continue the extraordinary work of the Texel Foundation. We’re proud to be securing the future of this business for our employees, insurers and clients alike.”
Gearing added: “The move to employee ownership via an EOT reflects a forward-thinking approach to succession planning and long-term value creation by Andy Lennard and the entire management team at Texel. It’s a great example of how the Fieldfisher Employee Ownership Solutions team brings together deep expertise across disciplines to deliver seamless, strategic advice on complex transactions. I wish the entire Texel family continued success.”
