CROP nutrition specialist Phosyn has bought out one of its founding members in a £5m deal, enabling the company to restructure its business.

With the support of bankers HSBC, and law firm Eversheds, Phosyn, of York, has purchased the 48 per cent shareholding of retiring founder John Tomkinson.

The shares have been placed in an employee benefit trust, and a new structure for the company put in place.

Robin Skelton, corporate finance partner at Eversheds, led the deal. He said: "The transaction has allowed Phosyn's founding member to retire and the company to look towards the future. This new focus will help Phosyn to move forward and grow its business."

The new structure for the company, includes a new chairman, Geoff Adams, and new managing director, Bernard Jacklin.

Mr Adams said: "Along with the share acquisition, we have introduced a new structure to the company and a fresh outlook to the board's strategy, which will allow middle management to flourish in a new business environment.

"We are confident that Phosyn will prosper from the move which is good news for the company and all its employees."

He added: "We were very impressed with the detail and professionalism of the lawyers working on this acquisition and can confirm that, following the success of this latest deal, Eversheds will now become the company's official corporate lawyer."

Norsk Hydro is maintaining its 35 per cent shareholding in the new company.

Phosyn was founded more than 30 years ago and is based in Pocklington, and specialises in micronutrient technology.

It has an annual turnover of £25m and employs 157 staff, including 113 in the UK and 44 in six overseas sales offices.

Exports account for 87 per cent of its turnover with trade going to more than 50 countries worldwide.