Denby Group

Anyone who has been through a management buy-out appreciates that it’s a complicated, time-consuming and often delicate process. Which makes leading casual dinnerware brand Denby’s MBO achievements particularly impressive – management secured a 70 per cent stake in the business, compared to what would be the more typical outcome of 25 per cent for businesses of this size.

The Denby Group changed hands in a £48 million deal in December 2004. Previously the subject of a buy-out by 3i in 1990, Denby was floated in 1994 before being taken private by IRRfc in May 1999.

Denby’s managing director, Garry Biggs, led the management team through the deal. By developing an early relationship with dealmakers Marc Gillespie and Dan Bowtell at Clearwater, Biggs anticipated the process and ensured that his agenda wasn’t overlooked compared to the shareholders looking to sell.

The secondary management buy-out was backed by Bank of Scotland Corporate, and was an early example of their Integrated Finance product. Through this arrangement, the management team took a majority equity stake - securing continuity of management and a strong commitment to develop the business.

Today Denby employs more than 600 people, operates 13 factory outlets and sells to more than 30 countries worldwide. The group’s new life is being built on healthy foundations and investment is being made for the long-term benefit of the business. A new flagship ‘home store’ has been built at its popular visitor centre at a cost of £725,000 and Denby is currently investing £1.6m in a state-of the-art new kiln.

Speaking about Clearwater's advice, Biggs commented:

“I found Clearwater’s wise counsel and practical experience at all times of the night and day (!) invaluable in what were quite challenging circumstances.”