The £11 million turnover business, founded in 1996, is now owned by its 82 employees through a newly-created employee ownership trust (EOT) in a move which it says will preserve its long-term independence and protect its internal culture.

The agency group – which includes Union Direct, Union Digital, Union Data and Union Connect – will operate under a new holding company, Agents of Change Ltd, with all staff becoming beneficiaries of the trust. It will continue to trade as “the Union Group”.

It will maintain its existing relationships with clients including ScottishPower, Scottish Widows, VisitScotland and the Scottish Government, as well as dozens of others across the UK and internationally.

Michael Hart, Heather Blair, Louise Killough, Emma Campbell and Daniel Batey, all current board directors in Union Group businesses, have been appointed as executive directors of the new operating company.

They will form a new executive board managing all operations and the strategic director of the agency.

Ian McAteer, the last remaining founder and group chair, and Gus Chalmers, managing director at Union Direct, are both stepping back from day-to-day roles after more than two decades leading the agency.

Both will remain involved as trustees of the new EOT to ensure continuity of values and oversight, the firm said.

Liz Gilchrist, who has a background in commercial banking with RBS and is now a consultant and leadership coach, has been recruited as an independent chair for the trust board and will serve alongside trustees Louise Killough and Daniel Batey.

Speaking on the transition, Mr 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.”

Mr Hart, speaking on behalf of the new executive board and all staff, added: “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.”

Azets advised on the financial aspects of the transaction while Anderson Strathern advised on the legal aspects.

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, which concluded today.

Ms 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.”