A logistics giant has become the "biggest employee-owned company of its kind in the world" in a move which its CEO has hailed as "transformational".
Manchester-headquartered Cardinal Partnership has been formed out of Cardinal Global Logistics and Far Logistics.
The business can trace its roots back to 1998 when it was founded in Eccles with a £15,000 loan.
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Since then it has grown into an international firm with over 40 offices, 6,000 clients and now states that it has revenues exceeding £500m. In its most recently available set of accounts, for 2021, Cardinal Global Logistics' revenues totalled £462.7m.
At the end of 2021, the group had almost 400 employees while its pre-tax profits totalled £41.3m.
Under its new ownership model, every members of staff will get a share of its future profits.
Brian Hay, CEO of The Cardinal Partnership, 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 company 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 an investment banking company, Houlihan Lokey, to pursue a liquidity event for shareholders when establishing its employee ownership trust.
Gareth Owen, capital markets director at Houlihan Lokey, added: "Cardinal is a high-quality logistics services provider, providing reliable, market-leading service to its clients on a global basis.
"The company 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."
Addleshaw Goddard advised HSBC on the deal, with the team led by Richard Oman, Jennifer Hanson, Conor Morrissey and Ozayr Makda.
Mr Oman said: "Employee ownership models are becoming increasingly popular due to the benefits they bring to businesses and their staff.
"We were delighted to work with the team at HSBC on the funding of this fantastic deal and we wish Cardinal every success for the future."
A team from specialist business advisory firm FRP, led by partner Anthony Collier and director David Bonner, provided financial due diligence to HSBC on the transaction.
Mr Collier said: "Employee ownership trusts have become an attractive succession tool for business owners and employees alike as they can help maintain a company’s culture while fostering greater engagement and productivity.
"Our team assessed all the relevant information that stakeholders needed to support their decision making, and we were proud to support Cardinal Global Logistics and HSBC with this transaction.
"Cardinal Global Logistics can now start a new chapter in their story with confidence, and I’m sure they have another 25 years of success ahead of them."
Leon Crook, relationship director at HSBC UK, added: "The success of Cardinal Maritime is testament to the culture of the business and the dedication of its staff.
"It’s fantastic to support the next stage of growth for the organisation as it moves to an employee ownership model and we’re sure this move will support the future of Cardinal for many years to come."
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