Cashmere clothing supplier completes £5.5m MBO
Heritage Cashmere, a manufacturer and supplier of luxury scarves and knitwear, has completed a management buyout worth £5.5m.
Founded in 1997, Heritage Cashmere is headquartered in Halifax and has production in the Far East managed through Hong Kong-based company Prodesse Limited.
The firm is a supplier of luxury cashmere products to the retail marketplace and premium fashion brands.
Andrew Sykes, CEO of Heritage Cashmere CEO, has acquired a majority share in the business from founder John Kaye, who will continue in his role as chairman and shareholder.
The MBO was completed with the support of fintech lender, ThinCats.
Sykes said: “I am grateful to John for his hard work in building up Heritage Cashmere to be the successful company that it is today and for creating the platform for the business to flourish in the future.
“I am proud and excited to be leading a talented team, who will work closely with our customers and suppliers to build on our success. I would like to thank Andy Haigh and BHP for their support throughout this process.”
Andy Haigh and Juel Chowdhury of BHP Corporate Finance acted as lead advisers on the cross-border transaction.
Haigh added: “We are really pleased to have structured and delivered the transaction for the client. There were a number of unique factors to the business, which meant it wasn’t a straight forward funding ask.
“However, Thincats demonstrated an ability to work with us to accommodate these factors and deliver a highly suitable financing package. Naturally we wish John, Andrew and all those involved in the business the best for the future.”
Ben Kimball, director regional business development at Thincats, also said: “We are delighted to support such a high calibre management team with a bespoke £2.75m funding package, tailored to meet this unique business. We wish Andrew and the team every success with the venture and their next stage of growth.”
Legal advisers on the transaction were Gateley plc (Sandip Khroud, Rebecca Bennett, Kerry Gibbons); Wright Hassall (Stephanie Elgie); Deacons (Hong Kong) and Robertsons (Hong Kong).
