Deal Announcement: The sale of Principle Cleaning Services to an Employee Ownership Trust

Corbett Keeling is delighted to have advised the shareholders of Principle Cleaning Services (Principle) on the sale of the majority of their shares to Principle’s 2,300 employees through the creation of an Employee Ownership Trust.

The company, which was founded by Douglas Cooke in 1989, has secured its long term future, enabling it to continue building its legacy, whilst creating an effective platform for growth and retaining its position as one of the industry’s leading independent businesses. All of its employees, whether full or part-time, are included in the transaction and will benefit from future profit sharing.

Commenting on the announcement, Douglas Cooke, executive chairman, said: “This is a fantastic transaction, which preserves the legacy of the company I founded over 30 years ago and places the future development of Principle in the hands of our 2,300 staff who are our most important asset. To have been able to include our people in the ownership of the business gives me immense pride and will, I am certain, ensure its stability and prosperity for many years to come.”

Our role: Douglas asked Corbett Keeling to run our Positioning, Readiness and Optimisation Review (“PRO Review”) workshop in order to assess the value of the business, identify any key areas for improvement and review the company’s readiness to complete a transaction.

As part of this preparation process, we modelled a variety of possible transaction structures for the shareholders, who decided they would like first and foremost to explore a sale to an Employee Ownership Trust (“EOT”). To ensure our client received the best possible advice at all stages of the sale process, we supported Douglas and his team in appointing experienced tax and legal advisers in Deloitte and DMH Stallard. Once any potential tax or legal-related obstacles had been identified and mitigated, the advisory team led by Corbett Keeling worked with the shareholders to finalise the structure of the transaction and prepare a comprehensive Heads of Terms.

In parallel, we shortlisted and interviewed a selection of offshore trustees to oversee the newly created EOT and worked with our client to choose the most appropriate candidate. Once the trustee had been appointed and the legal documents had been prepared, Corbett Keeling coordinated all parties through to signing and completion of the transaction.

About Principle Cleaning Services: Principle Cleaning Services is a market leader in providing corporate, commercial cleaning in London. Founded and established in 1989 by Douglas Cooke, the privately-owned company has an annual turnover in excess of £70m and employs 2,300 people. Supporting and delivering clean environments across London, its clients include well-known landmarks such as The Shard, 20 Fenchurch Street and 30 St Mary Axe.