Lodge Brothers Funerals transitions to EOT

Lodge Brothers Funerals Limited (Lodge Brothers/the Group) has announced its multi-million pound transition to become an Employee Ownership Trust (EOT). Thomson Snell and Passmore has advised the shareholders of family-owned funeral directors on this transition. Established in 1780 by the Lodge family, Lodge Brothers has earned acclaim for its funeral support, legal services, funeral plans and memorials. The group currently has a portfolio of 48 funeral offices spanning Surrey, Middlesex, Hillingdon, Berkshire, and West London. A robust senior management structure has been implemented, with the existing board of directors retaining responsibility for steering the group’s strategic vision. Additionally, an inaugural board of trustees has been appointed to oversee the EOT, ensuring that the group’s operations align with the “best interests of its employees”. The decision to embrace employee ownership stems from Lodge Brothers’ commitment to “maintain independence, uphold its values, and recognise the contributions of the workforce”. The legal team was led by M&A partner and head of Corporate at Thomson Snell and Passmore, Joanne Gallagher, supported by corporate lawyers Faye Cook, Daniel Gorringe and Rachel Macmillan. The team led on the legal aspects of the sale to the EOT including dealing with the complex process of obtaining regulatory change of control approvals from the Financial Conduct Authority (FCA) and the Solicitors Regulation Authority (SRA). Michael Lodge of Lodge Brothers said: “I would like to thank Jo and her team at Thomson Snell and Passmore for their hard work; dedication and expertise in getting this deal over the line. The transaction turned out to be more complicated than I first anticipated but the Thomson Snell & Passmore team took the various obstacles in their stride and delivered the deal on time and with smiles on the way.” Robert Lodge, chairman at Lodge Brothers, added: “Our employees are the heart of our service to clients. By entrusting Lodge Brothers to those who drive its success each day, we are safeguarding the longevity and prosperity of our business.” Gallagher concluded: “This was a great transaction to have advised on in terms of legal and regulatory complexity. We are increasingly seeing more EOT transactions in the market, as an alternative and more flexible exit strategy for sellers. We were able to harness our previous EOT experience and work closely with Lodge Brothers and Castle Corporate Finance to achieve a successful completion. We have no doubt Lodge Brothers will continue to flourish under this new structure.”