A COMPANY boss has turned his back on a multi-million pound windfall to sell his company to his loyal employees.

Big-hearted Frank Phair has accepted a £1M offer for his engineering firm, eight times less than what experts believe the company could be worth.

Stewart-Buchanan Gauges, based in Kilsyth, Lanarkshire, manufacture valves and gauges in their state of the art factory.

Formed in 1870, the firm, who also produce thermometers for the oil, gas and pharmaceutical industries, was taken over by Mr Phair, 75, when he bought it in 1970.

Despite using cutting edge technology in the plant, Mr Phair remained a staunch traditionalist, with no sign of a computer in his office.

With bidders in Europe and Asia waiting in the wings to bid for the successful Scottish business, fears had started to grow that the operation may be out-sourced abroad.

Bucking the recession that has seen the engineering and manufacturing sector suffering, Stewart-Buchanan Gauges have proved a rare success story.

In the year to December 2007, the company recorded pre-tax profits of £302,000 on sales of £7m.

But now thanks to Mr Phair's remarkable gesture, the future of his 156 staff members has been assured.

Frank said: "I'm 75 years old and succession was becoming more and more important. I had to face up to the reality that I was not immortal.

"It's a success story. There's very few of them left.

"I took over the company 40 years ago and at that stage we only had five employees. Now we have a family of 150.

"The company has grown rapidly, especially with advancing technology although I don't even have a computer in my office.

"I had to make sure of their continuation in the business and I decided the best way of doing that was an employee buy-out."

Despite Frank having four sons of his own, he was keen to make sure his working 'family' benefited from the move.

And he has even passed up on a high pension pay-out to secure the future for his workforce.

He added: "I am not pushing for any more than £1M. It depends how successful the company is.

"We wanted to keep the company in Kilsyth.

"We are all a big family here and that is what makes the company special.

"I felt it was important to secure the future of all my friends and staff."

Stephen Nicol, 50, who is operations manager and is set to take the reins at the Kilsyth factory, said he is excited by prospect of becoming a joint owner in the firm.

He said: "All the staff are delighted.

"Many of the staff live locally, with most staying within a five mile radius of the plant.

"Soon we will have 150 managing directors squeezing into the office."

Stephen, 50, who stays in nearby Cumbernauld, has served at the engineering firm for 25 years.

He added: "Since I joined the company it has grown so much.

"We have recently started an apprenticeship scheme, and we are committed to investing in the future of the company and making sure it serves the local community for many years to come."

The deal is set to be finalised within the next two months but after 40 years service, Frank admits he doesn't know what he will do with himself when he leaves the office for the last time.

He added: "I haven't given it any thought as to what I will do.

"I will keep a keen interest in the company, and hope they do well."