Specialist VW Campervan conversion company moves into partial Employee Ownership
Denby Campervans Limited, one of the UK’s leading providers of bespoke, high-spec, made-to-order luxury campervans, specialising in the iconic VW campervan brand, has changed ownership via a sale of equity to an Employee Ownership Trust, in a transaction advised by Yorkshire-based specialist Corporate Finance firm, Castle Square Corporate Finance.
Based in Leek, Staffordshire, Denby Campervans attracts customers from across the UK, who are seeking to purchase a luxury VW Campervan converted to their own specification and bespoke design. As well as designing and producing campervans, the Company also manufactures campervan roofs supplied to other campervan conversion businesses based throughout the UK.
Since forming the Company in 2008, the motorhome and campervan market has grown year on year and had more than doubled in size since 2013, with the number of new vehicles registered in 2021 totalling over 16,500, compared to 7,000 a decade earlier.
Denby Campervans’ annual sales have also grown year on year over this period. In 2018, the Company relocated to a new modern industrial estate, located on the outskirts of Leek Town Centre. The new premises consisting of modern offices, a customer showroom, a vehicle forecourt and a large manufacturing and vehicle preparation workspace has accelerated growth in recent years.
The Company employs roughly 25 members of staff, all of whom will be entitled to benefit from the sale to the employee-owned trust going forward.
Jonathan Downing will remain in his current position as Managing Director of the Company going forward and will continue to be supported by long-standing senior employees, headed by Finance Manager, Emma Brown.
Jonathan Downing said: “Dealing with Castle Square from start to finish has been a pleasure, they are extremely professional and easy to deal with. I would not hesitate in recommending them to anyone.”
Sheffield-based dealmakers Castle Square Corporate Finance provided corporate finance advice to the management team, leading negotiations on transaction value as well as deal structure and running a structured fundraising process.
Castle Square is a mid-market specialist corporate finance boutique with a proven track record for working with management teams to agree Management Buy-Out terms with business owners and successfully delivering the required debt and or equity funding on behalf of the management team.
Castle Square Director, Patrick Lynch and Advisor Joe Potts, led on the transaction, advising the Company on the deal value, structure and led a competitive fundraising process from which Shawbrook Bank emerged as the preferred funding partner.
Joe Potts added “It is fantastic to be able to provide the management team with the opportunity to benefit from the company’s growth going forward and share in the rewards from all the hard work that they put into the business. I am sure that the company’s customers will also reap the rewards from this added incentive for the staff to drive success”.
Led by Corporate Partner Peter Ellis and supported by Associate Rebekah Jones, Beswick’s corporate law team based in Stoke on Trent provided expert legal advice and support on the transaction.
Beswick’s Legal is an independent professional services firm providing expert advice on corporate law, property, employment, dispute resolution, insolvency, wealth management and sports law for both private individuals and corporate businesses based in the UK and overseas.
Peter Ellis added, “Creating the employee ownership trust provided a route to achieve Jonathan’s succession planning objectives with employee involvement going forward providing a basis to build on the culture and success Jonathan has created.”
Shawbrook is a specialist bank providing highly personalised, practical lending and savings products to individuals, businesses and real estate investors.
Matthew Greenhalgh, Director in the Corporate Lending team at Shawbrook, said, “We’re proud to play a part in this next stage of Denby Campervan’s journey and look forward to seeing what the business can achieve under this new Employee Ownership Trust structure. EOTs are becoming an increasingly popular option and we’re happy to support them as a means to transfer full or partial ownership”
“As with every EOT transaction, teamwork was vital to the success of this transition, everyone involved was committed to delivering the desired outcome for Denby and worked closely together to get the job done.”
Other advisors on the transaction were Rob Fawke from Gunnercooke who provided legal advice on the transaction to Shawbrook Bank and the Manchester office of Beaver Struthers Chartered Accountants who provided financial due diligence services to Shawbrook Bank.
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NOTES to the Editor
Sheffield-based Castle Square Corporate Finance offer pro-active corporate finance advice to clients throughout the UK, tailoring our service to our clients and their markets, giving us an enviable record of successfully completing deals, including acquisitions and mergers, Management Buy Outs and Buy Ins, finance raising and disposals.
Contact Details:
Kerry Raistrick
Castle Square Corporate Finance
Tel: 0114 213 8353
Mob: 07810 310 304
Email: [email protected]
twitter: @castlesquarecf
website: www.castlesquarecf.co.uk
LinkedIn: www.linkedin.com/company/castle-square-corporate-finance
