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Annex Business Media transitions to employee-management partnership model

Today, Annex Business Media (Simcoe, Ont.) took a major step in its evolution to an employee-driven business.

As Phase 1 in the transition to a unique Employee-Management Partnership (EMP), 50 per cent of Annex Business Media shares are now owned by a broad management team.

Phase 2 will see the remaining Annex employees more closely integrated with the financial success of the company through an Enhanced Employee Incentive Program (EEIP).

Annex has been working with consultants Ernst & Young (EY) for the last 10 months to secure financing and find an option to dedicate up to 50 per cent of after-tax profits to power this significant employee benefit, and will continue to do so in the coming months. It is expected that this second phase will be completed prior to year-end.

Annex founders Mike and Sue Fredericks have been instrumental in shaping the new ownership structure, and will serve as co-chairs on the company’s board of directors.

“Sue and I are really excited to pass on the ownership and legacy of Annex to the management and employees,” says Mike Fredericks. “We are very proud of Annex’s position as Canada’s pre-eminent business media company and feel we have the right management team and employee group in place at this moment in time.” Sue adds that today’s announcement is a “dream scenario for the Director of Soul. Offering the opportunity to ‘own’ Annex’s next phase to the people who helped to build our success is our way of paying it forward”.

Also effective immediately, Scott Jamieson is CEO of Annex Business Media and will serve on the board of directors. Scott has been with the company for 20 years, spending the past five as president and COO.

“Following Mike and Sue’s lead, Annex has often built its own path to success,” says Jamieson.  “Through their vision and generosity of spirit, the employees and management will have a rare opportunity to continue the Annex legacy, to build the enterprise along our core values and within our unique culture, and to benefit directly from its success while doing so. On behalf of all of us at Annex, I thank Mike and Sue and wish them the very best in their next act.”

The transaction was financed by TD Bank, with tax, financing and ownership structure consultation from EY.

Annex Business Media is Canada’s largest B2B media company with 60 media brands, such as PrintAction, serving the country’s business elite through an omni-channel network. Its 160 employees are based in two Ontario offices and across six additional provinces.