Sale Sharks owners announce acquisition of clothing firm set up by former rugby stars

The owners of Sale Sharks rugby club have confirmed they have acquired clothing retailer Cotton Traders.

Buy-and-build acquisitions group CorpAcq has acquired a majority stake in Cheshire based Cotton Traders from its founders, former England rugby union team captains Fran Cotton and Steve Smith.

The launched the business in 1987. Both Fran and Steve will remain active board members following the deal.

Based in Altrincham the home shopping retailer also has over 120 stores in the UK and its expanding international presence covers delivery to 25 countries.

The business has enjoyed strong growth in recent years, bucking the adverse trading conditions seen on much of the UK high street.

In 2017 Cotton Traders recorded the best results in its 30-year history, with turnover up by 5.5% to £86.7m, and operating profit rising 5.2% to £8.1m.

CorpAcq, which is also based in Altrincham, was formed in 2006 and is now one of the fastest growing companies in the UK. Its portfolio of more than 20 different businesses has a combined turnover of over £200m, covering a range of industries including manufacturing, packaging and engineering.

CorpAcq is also the owner of Sale Sharks, where Cotton Traders co-founders Fran Cotton and Steve Smith sit on the board.

Cotton Traders plans to use the investment from CorpAcq to help it further achieve its aim of being recognised as “The best multichannel retailer for the grown-up generation”.

This includes developing its multichannel offer across home shopping, online, stores and its contact centre, launching in new overseas territories and investing in new product ranges across homeware, clothing and apparel.

Jon Dorsett, CorpAcq’s Investor Director, joins the Cotton Traders board as non-executive director. Commenting on the deal, Cotton Traders CEO Nick Hamblin said: “I am delighted to welcome CorpAcq as a new investment partner with Cotton Traders.

“The investment comes at a time of strong growth for the business, when our offer of affordable, quality products in an extensive range of sizes and styles is really resonating with customers.

“We look forward to working with the CorpAcq team to drive the business to the next level over the coming years, building upon the successes we have achieved over the last 30 years.”

Simon Orange, CorpAcq’s founder and Chairman, said: “We have a very strong and positive relationship with the owners of Cotton Traders. We share the same values and outlook, and we are confident that this deal will be of huge benefit to the brand, all those working within the company, and to CorpAcq.”

During their long and prestigious rugby careers, both Fran Cotton and Steve Smith played for England and the British Lions, as well as several club sides including Sale Sharks.

Having launched Cotton Traders in 1987, the brand became renowned for the quality of its rugby apparel – a reputation that was enhanced when Nelson Mandela attended the Rugby World Cup sporting a Cotton Traders shirt in 1995. Fashion retailer Next acquired a stake in the business in 1997.

Cotton Traders opened its first standalone store in 1998 as it continued to expand its clothing and leisurewear ranges for both men and women. Fran and Steve completed a buy-out of Next’s stake in 2015.

Fran Cotton said: “It has been a fantastic journey for Steve and I to take Cotton Traders to this point over the last 30 years, and I must thank all of our amazing staff who make the brand what it is today.

“I am excited by our future plans, and look forward to working with CorpAcq on building the business in the years ahead.”

Acting on behalf of CorpAcq was the corporate and transactional arm of Manchester’s Beyond Professional Services Group, Beyond Corporate.

Matt Fleetwood, Corporate Partner, said: “I am delighted that the team and I were able to advise CorpAcq on what is a significant project, not just for the region but for the UK retail market. It was a complex transaction and we advised on all aspects of the deal.”

Manchester-based law firm Nexus Solicitors advised the shareholders of Cotton Traders during the process.

Jamie Lloyd, Director at Nexus Solicitors, said: “It was fantastic for our team to work on such a significant deal for a thriving home-grown business like Cotton Traders.

“We thoroughly enjoyed working with the founders and management team on this exciting development for the company.”