Private equity group sews up deal for £21m textiles business
A £21m-turnover yarn manufacturer, Sirdar, has been acquired by London-based private equity manager BlueGem Capital.
The Wakefield-based firm will be combined with BlueGem acquisitions needlecraft business DMC (Dollfus-Mieg et Compagnie) and Wool And the Gang, acquired by the private equity firm in 2016.
Together the three companies will form a new DMC Group, formally known as Crafts Group Holding.
Sirdar specialises in hand knitting yarns, and is based in Alverthorpe, Wakefield. It was founded in 1880 and specialises in textile products, with a major export arm in North America.
In its latest accounts for the year to June 2015, Sirdar Holdings, the parent company, returned revenues of £21.9m and pre-tax profits of £3.2m. At that date, it employed 132 staff.
BlueGem are the owners of the Liberty department store brand.
The RSM team, led by corporate finance partner Steve Hubbard with support from Amy Lewis and Umito Choji, acted for the shareholders of Sirdar on the transaction.
Squire Patton Boggs’ corporate partner Paul Mann with assistance from Louisa Hine and Harry Hobson, acted as legal advisors to the shareholders.
Steve Hubbard, corporate finance partner at RSM, said: ‘As a long standing client, who we advised on their original management buyout, I am delighted that we have been able to support the shareholders on their sale to BlueGem.
“It brings together three complementary businesses, delivering real synergies in product offering, distribution channels and routes to market in the UK and globally. This will allow Sirdar to maximise opportunities in the thriving yarn market – shaping its next stage of growth.’
Paul Mann, corporate partner at Squire Patton Boggs, said: ‘We have enjoyed a long relationship with Sirdar, having acted for the group alongside RSM for many years. It is a measure of the strength of the longstanding relationships held by Yorkshire advisers that ensure we continue to support businesses over many years through each stage of their growth and development. It has been a real pleasure to have advised the shareholders on the sale of the business and we look forward to seeing the business continue to prosper under new ownership.’
