UK’s largest yarn spinner returns to private ownership
The UK’s largest woollen yarn spinner, Lawton Yarns, has returned to private ownership following a £13.4m total facility from Secure Trust Bank Commercial Finance.
The facility funded the recent management buyout and will provide additional working capital and growth support to the business which is headquartered in Ravensthorpe and supplies woollen yarn to all major carpeting manufacturers in the UK as well as exporting to Europe, Asia, and America.
The business which is said to be a key component of the UK market was originally family-owed before experiencing a turbulent period in 2019 which which saw its parent group enter insolvency. The yarn manufacturer was later acquired by Breal Capital in 2020.
The facility provided by Secure Trust Bank Commercial Finance will support Lawton Yarns as it takes a long-term view to serve the woollen carpet industry, with the latest MBO offering greater stability for the supply chain into the UK woollen carpet manufacturing industry.
Tim Kay, managing director at Lawton Yarns, said: “Lawton Yarns, like many businesses, traded through the issues posed by the pandemic. With the support of our customer base, we maintained our position within the supply chain of the woollen carpet industry.”
Carlton Siddle, chairman at the company, added: “The support that we have received from John, Paul, Colin and the wider team at Secure Trust Bank has allowed the business to return to private ownership. The commercial finance team understood our vision for the company and worked quickly to create the facility that’s right for our future. This MBO will stabilise Lawton Yarns and enable the business to tackle and overcome any future challenges.”
John Gribbon, regional managing director of Yorkshire and the North East at Secure Trust Bank Commercial Finance, said: “Lawton Yarns is an integral part of the UK carpet manufacturing industry. Without it, the UK market would not exist. We’ve enjoyed working closely with the management team and seeing its passion to return to private ownership first hand. We understood how important it was to the business to create an appropriate facility quickly. With this facility in place, Lawton Yarns will continue to support the woollen carpet industry as they have throughout their long history.”