Hilco and Caird sell stakes in pottery brands Denby and Steelite

Two private equity groups behind the Midlands' potteries revival are cashing out their investments, which industry officials see as further evidence of the improved fortunes of the sector.

Hilco Capital has put its 100 per cent stake in Denby Holdings, owner of the Denby coloured glazed ware and Burleigh ceramics brands, up for sale.

"Following a strong performance in 2013, particularly in key export markets, we have received a number of unsolicited approaches from trade buyers seeking to purchase the business," said Paul McGowan, chief executive of Hilco Capital.

"As a result of this interest, we have thought it appropriate to appoint advisers to run a formal sale process."

Portmeirion, the Aim-listed company that bought Spode and Royal Worcester out of administration in 2009, is understood to have expressed an interest.

Separately Caird Capital last month disposed of its 17 per cent stake in Steelite International, the UK's largest tableware ceramics manufacturer that also owns the Royal Crown Derby brand.

Caird, which took over various equity investments from HBOS integrated finance, has been mandated to dispose of all those stakes. Nonetheless industry officials say the timing coincides with a revival in the performance of all potteries businesses.

The shares were acquired for an undisclosed sum by a management team led by Kevin Oakes, chief executive.

After years struggling against cheap southeast Asian imports, all the main manufacturers in the six towns that comprise the Potteries are enjoying a modest return to growth including Wedgwood, which is owned by WWRD, a US private equity company.

For Steelite, originally a spin out from Royal Doulton, this is the second management buyout - the first in 2002 was backed by LDC, the Lloyds Bank private equity arm.

Steelite had its most successful year ever in 2013, and this weekend will be providing 140,000 tableware pieces to the Olympic Village at Sochi, under a catering contract to supply this month's Winter Games in the Russian resort.

Its production until now was targeted at hospitality customers such as hotels and cruise liner companies, with 85 per cent of what it produces exported. But with the purchase of Royal Crown Derby in 2012 Mr Oakes said the company would target the luxury retail consumer.

Mr Oakes said the management team now had a "huge motivation because we totally believe in this business and in manufacturing in Britain".

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