Roch Valley becomes employee owned

Roch Valley Limited – the leading UK manufacturer, wholesaler and online retailer of high-quality dancewear, gymnastics clothing and accessories – has announced that it is now owned by its 74 employees, under the Employee Ownership Trust (EOT) model. The transaction was supported by Barclays Corporate Banking (debt financing); Mills & Reeve (legal and tax) and Initium Corporate Finance (transaction advisory services).

First established in 1980, and based in sites in Heywood and Oldham, Greater Manchester, the business owns and operates two well-known brands: Roch Valley, a wholesale supplier of high-quality dancewear, shoes and accessories; and The Zone, an own label range of high quality technical gymnastic clothing, all designed, developed and manufactured in house.

“Stuart Aldred and the team at Initium have been right by our side throughout the process, offering advice, insight and invaluable support. As an employee-owned business themselves, they really get what it means to make the transition” – Danny Doughty, Roch Valley

With its expert staff, established routes to market, and renowned, market-leading brands, Roch Valley is a British manufacturing success story. Its key differentiator in a highly competitive marketplace is its fully owned and operated UK manufacturing facility, which allows the business to retain full control of manufacture, quality assurance, and stock availability. Alongside its commitment to quality, Roch Valley is dedicated to leading the industry in minimising the impact of its activities on the environment, via a detailed Sustainability Strategy. In this, the business is aided by its UK-first manufacturing/logistics/fulfilment processes – a significant advantage over competitors who use overseas suppliers.

New leadership structure

Following the transition to employee ownership, the business will be led by a senior management team under Donna Golding and Ria O’Neill, who have been appointed to the board of directors as CEO and Financial Director respectively.

Danny Doughty, former CEO, shareholder and part of the founding family of the business said: “I am incredibly proud of the business we’ve built over the years and I am delighted to hand the reins over to the brilliant team here, led by Donna and Ria. As shareholders, we have spent some time considering our sale and exit options. I have seen other businesses in our industry acquired by other organisations, mostly by overseas investors, and while there has been a lot of interest in Roch Valley, we felt that employee ownership was by far the best option for us. There has always been a family feel to Roch Valley, and a culture of togetherness. Becoming employee-owned secures that, for good.”

Donna Golding said: “This is fantastic news from our business – and a chance for us, the employees, to build on the legacy of a truly British manufacturing company, under an ownership model where every single member of staff has a stake in the business, its vision, and its future. Ria and I are incredibly honoured to lead Roch Valley forward, and we see this as an evolution, rather than revolution, of all that Roch Valley stands for.”

The news comes as Roch Valley launches new, upgraded websites for its brands, underpinned by a newly integrated ERP system, and enhanced Shopify functionality to improve customers’ online purchasing experience.

“A standout transaction”

Roch Valley Limited is now fully owned by its employees under the EOT model – a government initiative, whereby a majority shareholding in a company is held for the benefit of all employees. Any EOT requires compliance with HMRC regulations, and must be approved by HMRC. Accordingly, alongside advice from Initium Corporate Finance – itself an employee-owned business – the shareholders of Roch Valley were advised by leading nationwide law firm Mills & Reeve, while asset-based lending for the transaction was provided by Barclays Corporate Banking, Lancashire and Cumbria.

Imogen Cummings, Relationship Manager, Barclays Corporate Banking, said: “We are delighted to support Roch Valley, a long standing and valued Barclays client, with this transaction and are pleased to have been able to be a part of their next phase of growth as they transition into an EOT. This aligns closely with the Barclays Corporate Bank focus on supporting and lending to more businesses across the UK, and we look forward to continuing to support Roch Valley and our wider client base with their future development.”

Chris Ross, Partner at Mills & Reeve, said: “Roch Valley is a premium manufacturer whose commitment to quality and customer service is outstanding. This is an excellent deal for all parties and a great example of how an EOT can be a strategy for entrepreneurs and business owners who want to exit the company, while a leaving a legacy for their employees to build on and drive forward growth.”

Stuart Aldred, Manager at Initium Corporate Finance commented: “The shareholders of Roch Valley came to us with a clear goal – to leave their legacy in the hands of the right people to take the company forward, while respecting its history and tradition. On reviewing their options, it quickly became clear that the best people to do that were the very same people who had helped build that company in the first place – the staff of Roch Valley.

“By selling the business to the staff, the shareholders have achieved their desired exit from the business in an advantageous way, while also having total confidence in the new owners’ ability and understanding to keep their vision, culture and values alive. Roch Valley will continue to produce world-class dancewear and technical gymnastics garments, manufactured in Great Britain, under the same brilliant team who have established that reputation in the first place.

“It’s clear that this is a standout transaction for the company, the staff, the shareholders and for anyone who wants to see an EOT transaction done for all the right reasons. It has been a real pleasure helping them achieve this outcome and great thanks goes to all parties involved for their generosity of spirit and can-do attitudes.”

Discussing Initium’s role in the transaction, Danny Doughty of Roch Valley said: “Stuart and the team at Initium have been right by our side throughout the process, offering advice, insight and invaluable support. As an employee-owned business themselves, they really get what it means to make the transition – and their expertise and experience – and genuine passion for the positive benefits of employee ownership – has always shone through.”