Edinburgh-based creative and marketing agency the Union Group has become employee-owned after nearly 30 years, in a move that secures its future and rewards the team behind its £11 million turnover success.
The move sees ownership of Union Group, founded in 1996, transferred to an Employee Ownership Trust (EOT).
The agency — which includes Union Direct, Union Digital, Union Data, and Union Connect — will operate under a new holding company, Agents of Change Ltd, with all 82 staff becoming beneficiaries of the Trust. It will continue to trade as the Union Group.
“Despite the change in ownership, it’s very much business as usual: the agency will continue to deliver award-winning work for clients including ScottishPower, Scottish Widows, VisitScotland and the Scottish Government, as well as dozens of other valued clients across the UK and internationally,” said Union Group.
“Client relationships and teams remain unchanged, ensuring a seamless transition.”
The executive directors of the operating company will comprise of Michael Hart, Heather Blair, Louise Killough, Emma Campbell and Daniel Batey. All are current board directors in Union Group businesses. They will form the executive board of the Union Group, managing all operations and the strategic direction of the agency.
The move marks a major generational handover at the Union. Last remaining founder and group chair Ian McAteer and Union Direct’s managing director Gus Chalmers will both step back from day-to-day roles, after more than two decades leading the agency’s success. Both will stay involved as trustees of the new EOT, ensuring continuity of values and oversight.
An independent chair for the Trust Board has been recruited, with Liz Gilchrist joining to lead the trust. Gilchrist has a background in commercial banking with RBS and is now a consultant and leadership coach. The other trustees will be Louise Killough and Daniel Batey.
McAteer said: “We built the Union on the idea of, well, a ‘union’ – based on the principles of equality, respect and fairness.
“An EOT is therefore a natural next step. It rewards the people who have made the agency what it is, and protects our independence, creativity, and culture for the long term.
“I’m incredibly proud of what we’ve achieved over the last 30 years, but I am equally excited for what’s to come. Our clients and suppliers can rest assured it’s business as usual, and I fully expect there’ll be an extra spring in our step and our service following this news.”
Hart said: “This is a once-in-a-generation opportunity. Rather than pursuing a trade sale, the founders have entrusted the agency’s future to its people. It’s an act of faith that gives us control, continuity and renewed ambition.
“We’re determined to build on our creative reputation and continue growing with purpose, based on our unique blend of award-winning creativity, client service and ability to deliver across all marketing channels.”
The transaction was handled by Anderson Strathern (legal) and Azets (accountancy).
Alan O’Riordan, Partner at Azets, said: “Azets are delighted to have been able to support the Union group in transitioning to employee ownership. Despite the added complexities following the October 2024 Budget, EOTs remain an attractive option for many businesses. Azets wish the Union Group and its employees the very best of success in this exciting next chapter.”
Carole Leslie, from Ownership Associates UK, acted as a specialist consultant for the Union team, helping to guide them through the process.
Leslie, who has advised on over 150 employee ownership projects since 2005,said: “The evidence is clear that EOTs perform well, with better productivity, profitability, staff retention and wellbeing.
“Although the model has been around for a long time, for example John Lewis in 1929, we now are seeing an exponential increase in the number of EOTs in recent years, with a predicted 500 UK EOT transactions this year alone.
“I think for a business like the Union group, which is entirely built on the talent of its people, employee ownership is the best fit possible.”