New era for Scott & Fyfe after £5.8m employee buyout

Tayport technical textiles manufacturer Scott & Fyfe has completed a £5.8 million move transforming the company into employee ownership.

The buyout of the Fife firm takes Scott & Fyfe out of private hands for the first time in its 149-year history.

Scott & Fyfe, which started out life in 1868 as part of Dundee’s woven jute trade, has been owned by the Tough family since 1909 and the deal sees all of their shares sold to a newly-established employee benefits trust.

Former executive chairman Hamish Tough, together with his sons Richard and David Tough, both directors of the company, have sold their shares to the Scott & Fyfe Employee Benefit Trust for £5.845m.

The company said the move confirms their decision that the long-term future of the company and the interests of its stakeholders are best served by conversion to employee ownership. Under the terms of the new agreement, the employee benefits trust will always own a majority of the ordinary shares.

Richard and David Tough’s proceeds, net of capital gains tax, amount to £3.894m.

The brothers remain as directors of the new company.