Manchester sportswear brand ‘begins moves for $200m fundraising’
Elite sports fashion brand, Castore, is sounding out investors over a possible $200m fundraise, and is a likely contender to float on the stock exchange in the medium term, according to bankers.
The business, founded in 2015 by Liverpudlian brothers Thomas and Philip Beahon, announced in April 2021 that it was shifting its company HQ from Liverpool to Manchester in a move that would create 300 jobs over two years.
It has established kit supply deals with English Premier League clubs Newcastle United and Wolverhampton Wanderers, as well as Scottish Premiership side Glasgow Rangers, and is also diversifying into F1, rugby union, cricket and golf.
Investors include tennis star, Sir Andy Murray, as well as the Issa brothers, founders of Blackburn-based global forecourts and foods giant EG Group and joint owners of the Asda supermarket chain.
The fast expanding brand is aiming to take on established sportswear manufacturers like Nike, Adidas and Puma, and, according to Sky News, is in talks to raise capital to fund its growth.
The founders are said to be in talks with bankers over funding options, with City sources claiming Castore has appointed Rothschild to advise it ahead of a formal process later this year.
At the time of its most recent debt funding deal, last autumn, Castore was believed to have been valued at £750m. That could surpass £1bn if it sells shares as part of its capital raise plans.
Castore is forecast to make profits of about £30m this year.
In April 2021, Castore announced it would relocate its company headquarters to One Central Street, part of The Albert Estate in Manchester city centre, where it signed a 13-year lease with landlords Kinrise to occupy all available workspace – circa 22,100 sq ft – within the building, situated across five floors.
Co-founder, Phil Beahon said at the time: “It is clear for everyone to see that Manchester is a city with an incredible buzz about it and the number of fast growing, high tech businesses in the city were a real draw for us when choosing our long-term home for Castore.”
The decision to relocate to Manchester was welcomed by city council chief executive, Joanne Roney, who said: “The business has seen impressive growth since their founding and this significant investment will create 300 jobs, another endorsement of the city’s strengths in areas such as digital and e-commerce.”
Tim Newns, the then chief executive of Greater Manchester inward investment agency MIDAS, said: “Castore is one of the UK’s most exciting and fastest-growing sportswear brands and we’re delighted to welcome them to Manchester.
“Not only will this be Castore’s HQ, but it will also include a new innovation hub, product development studio and content studio which, combined, will house 500 people over the next two years.”
Castore has been contacted for comment.
