Nelsons Provides Advice to Top Music & Ent's Poster Company on EMI Scheme
Released on:
29/09/2009
Nelsons’ Leicester office has acted for Pyramid International, which produces and sells posters and merchandise globally under licence for many of the top brands and names in the music and entertainment industries, on an Enterprise Management Incentive (EMI) Option Agreement that provides for three directors to become new co-owners and secures a four-strong owner management team that will drive the Leicester-based company’s continued UK and international expansion.
Under the EMI scheme, financial director Ian Pridmore, licensing director Mordy Benaiah and export sales director Nick Morley will shortly join Pyramid International’s sole shareholder Ally Mayer as co-owners, with each of the three agreement beneficiaries being granted options to purchase shares at specified stages over the next three years.
Managing director and majority shareholder, Ally Mayer says: “Now a market-leading company, Pyramid has grown immensely in both domestic and international markets over the last ten years or so, having acquired or invested in six related businesses. Despite the current economic climate, we have continued to grow the turnover in all of our businesses, with July being one of the busiest months we have ever known due to sales of Michael Jackson posters exceeding 2 million globally.
“Ian, Mordy and Nick have made a massive contribution to the company’s success during this period, which is why I wanted to recognise their commitment and loyalty through the introduction of the EMI scheme. Together, we will develop a strategy to take the company to the next level, both domestically and internationally.”
Partner Chris Rees and solicitor Rik Pancholi of Nelsons provided legal advice to the company on the EMI Option Agreement. Chris Rees comments: “EMI Option Schemes provide a good structured means to incentivise key employees, providing the company in question can fit or meet the relevant criteria. For Pyramid, this has given Ian, Mordy and Nick the ability to take a stake in the company tax efficiently. In turn, this gives a good platform for Pyramid’s management and the company to keep going from strength to strength.”
Advice in relation to the structure and tax aspects of the EMI Option Scheme was provided by Mike Tuhme and Emma Diamond of Tenon. Mike Tuhme comments: “EMI Option Schemes are extremely flexible whilst offering some significant tax breaks and it is no surprise that we have seen their popularity escalate in recent years. Pyramid’s key management team will be motivated to grow the company as their equity incentive will ultimately allow them to share in Pyramid’s capital value.”
Established in 1992, Pyramid International supplies more chain store accounts, services over 1,000 independent accounts and has more customers than any other poster company in the UK. Delivering a wide variety of licensed products direct to retail, including posters, calendars, art prints, stickers, button badges, badge packs, lenticular posters, accessory packs, postcards, and canvas prints, the company’s UK operation has an annual turnover in excess of £10million. Pyramid International also co-owns three companies in New York, Amsterdam and Sydney, with an additional combined turnover in excess of £11million.
From modern 45,000 square foot headquarters based in Blaby, Leicester, the company’s UK and export sales teams are dedicated to servicing the needs of customers, offering an extensive range of unique brands and licensed product generated by an in-house creative department. The company also boasts two of the most modern rolling machines operating in Europe, giving it the capacity to roll an incredible 172,000 posters in one day!
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