Internal Share Offer welcomes a further 1,000 employees as first-time investors
2023 Internal Share Offer saw nearly 2,000 Howden employees in total invest £32 million in the company
Howden has announced (25 May 2023) that 1,000 of its employees have chosen to invest for the first time in the company through its 2023 Internal Share Offer scheme (ISO). This takes the total number of employee shareholders to approximately 4,500 across 35 countries out of the 50 in which Howden operates, representing the largest shareholder group. Howden is the fifth largest employee-owned business in the UK. The success of this year’s ISO underlines its unique capital model, which blends employee ownership with aligned, external minority investors, driving Howden’s ability to deliver stellar, sustainable growth and build a business for the long term.
This year, General Atlantic marks 10 years as an investor, whilst Caisse de dépôt et placement du Québec (CDPQ) has been an investor for five. Following the addition of HgCapital to Howden’s existing panel of equity partners in 2021, as part of the company’s acquisition of A-Plan Group, all three external investors committed to continue investing in Howden for a further seven years. The longevity of tenure of Howden’s minority investors, who each own 22%, reflects their alignment with the company culture and its long-term strategy. Notably, all three external investors invested further funds as part of the £1bn of additional capital for fresh investment, as recently announced.
Purpose is as important as profit for Howden, with the Group’s Foundation, an independent grant-making charity, also a shareholder in the business. Through this year’s ISO scheme, the Foundation received £1.8 million from the sale of shares, which it will use to further its charitable work around the world, including the protection of people against the social and economic effects of climate change.
Will Bloomer, Chief Corporate & Legal Affairs Officer, said: “Employees from across two thirds of our current country locations participated in the ISO this year, with 43% of investors being from outside the UK. We had investors from Ireland to Indonesia and Sweden to Singapore, demonstrating the broad and international appeal of our share ownership scheme. It is hugely important to us that the ISO is accessible to as many of our employees who wish to participate, where permitted. I’m most proud of the fact that 1,000 employees have joined as brand new shareholders this year, helping to build on the success of our business.”
David Howden, Chief Executive Officer, Howden Group, said: “The share scheme embodies our founding principles of friendship, trust and independence and the freedom to build a business that is owned and driven by the people that work in it. Our unique capital model and employee ownership is a key differentiator for us in attracting the best, entrepreneurial talent in the market and partnering with culturally-aligned firms to drive sustainable growth. Since the company was founded in 1994, we have reinvested our profits back into the business, rather than paying dividends, and will continue to do so to build the business for the next 29 years.”