Co-operative Development Scotland

Clansman Dynamics, a global market leader in the design and manufacture of robotic handling equipment, has become an employee-owned business after the senior management team was 'inspired' by employee-ownership at a workshop run by Co-operative Development Scotland (CDS).

Founded in 1994 by Dick Philbrick, Clansman is a market leader in the highly specialised field of robotic handling equipment for industry. Based in East Kilbride, the company produces highly sophisticated material handling solutions for forges, foundries, steelworks and garbage handling.

Clansman's client list includes many leading manufacturers, such as Volvo and Fiat, and the company exports over 90% of production - with China currently accounting for 35% of sales. Employing 30 staff and with turnover currently £7 million, Clansman is planning to achieve turnover of around £10million within the next two years as it expands its range of products and services.

CDS and the UK's leading employee ownership investment vehicle, Dunfermline-based Baxi Partnership, subsequently helped the company's employees create a funding package to buy the business, including a tax-efficient employee benefits trust. CDS also contributed to the costs of a feasibility study delivered by Baxi Partnership.

Clansman's move into employee ownership is the realisation of an ambition harboured by Dick Philbrick since the early 1970s for a different way of working.

He explained: "My earlier experiences of employment gave me the conviction that there was a different way of doing business. Employee ownership will enable the employees to focus on the long-term, create a strong pipeline of products and build the business in a highly competitive market. The business is in great shape, we have no borrowings and we are focused on growing the business. The deal could not have been done without the inspiration and help of CDS, and the specialist advice from the Baxi Partnership."

Sarah Deas, Chief Executive of CDS, added: "We are delighted to have played a key role encouraging and enabling Clansman to move into employee ownership. We would like to pay tribute to Dick Philbrick, the management team and the employees, who have worked together to take the company into employee ownership. Clansman is already a very successful global business. Now, under employee-ownership, the company is better placed than ever to develop and grow."

John Alexander, Baxi Partnership Managing Director said: "Clansman was a prime target to be acquired, however Dick and his management team wanted to preserve the independence of the business, which is now assured through the EBO. Employee-owned businesses tend to be more entrepreneurial so I can see strong growth potential for Clansman.