EOT secures long-term legacy for Denny Bros

Background

Founded in 1945, Denny Bros is a second-generation, family-run group based in Bury St Edmunds, Suffolk, that has grown to become a world-leading specialist print company. The invention in the late 1970s of ‘Fix-a-Form’ – the first multi-page label – established Denny Bros as one of the world’s foremost labelling solutions firms.

The group diversified via acquisitions to expand the print solutions it offered to clients operating in a wide range of sectors, including healthcare, clinical trials, agrochemical and informational. FRP was initially instructed by the shareholders and management team to review all of the available options to secure the group’s long-term stability; the aim was for the Denny family to remain heavily involved in running the business for many years to come.

Action

After exploring the options available, our Corporate Finance team identified that an employee ownership trust (EOT) would provide the legacy continuation the shareholders wanted, alongside job stability and enhanced benefits for employees. We finalised a detailed financial model for the combined group, which included numerous trading subsidiaries, investments and property assets. The team drafted and submitted tax clearances to HMRC, and prepared a detailed share valuation for the group and the new trust company. We secured excellent debt terms with funders to support the transaction, and worked alongside the group’s legal advisers on the sale of shares to the EOT and the governance of the trust.

Outcome

FRP managed the transaction through every stage, providing advice and support on both corporate finance and tax. Our team achieved a structure and transaction in a tight timeframe that met the needs of the shareholders, as well as all of the entities within the group and its 100 plus employees, with the legacy of the founding shareholders and the family name protected for generations to come.

Find out more about the process and benefit of an employee ownership trust.