Insider Media Limited

Birmingham law firm Shakespeare Putsman has assisted with the ownership transfer of weight management business Cambridge Weight Plan (CWP). The possession of 49 per cent of the company, which employs 150 people in Northamptonshire, has been moved to the company’s employees through the creation of an Employee Benefit Trust.

The newly-created Cambridge Trust is designed to secure an independent future for the company, which manufactures and markets Cambridge Weight Plan, a low calorie weight management programme.

The Trust has purchased shares from the company funded by loans and contributions from Cambridge Nutritional Foods (the parent company of Cambridge Manufacturing Company (CMC)).

Owners Eileen Skinner, Rob Thompson and John White said they “want to ensure that the company is run in the long term best interests of its employees”. The trio undertook a management buyout of the company five years ago.

CMC managing director Eileen Skinner said: “Cambridge Weight Plan is an unusual company because we are one of a very few direct selling businesses that both manufactures and sells its own products.

“As we plan for the future and consider what would happen if any of the owners wanted to exit the business, we realised that our unusual role as both manufacturer and retailer could lead to a risk of the break-up of CMC which would threaten the security of our direct employees, our consultants in the UK and the operations of our distributors overseas.

Shakespeare Putsman’s corporate team, headed by Gary Davie, advised on this change in ownership structure and also advised the management team on the original management-buy-out in 2005. Davie will also serve as a trustee of the Cambridge Trust.

HDI Capital Partners and Parisi tax also advised and funding was provided by Lloyds Banking Group (Milton Keynes).

CMC currently employs 150 people in Corby, Northamptonshire.