Heritage Cashmere, a design-led manufacturer and supplier of luxury scarves and knitwear, has completed a management buyout (MBO) worth £5.5m after securing funding from alternative finance provider, Thincats.
Founded in 1997, Heritage Cashmere is headquartered in Halifax, West Yorkshire, and has production in the Far East managed through Prodesse, a Hong Kong-based company. The group is a leading supplier of luxury cashmere products to the retail marketplace and premium, international fashion brands.
Group CEO, Andrew Sykes, has acquired a majority share in the business from founder John Kaye, who will continue in his role as chairman and shareholder.
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.”
Andy Haigh and Juel Chowdhury of BHP Corporate Finance acted as lead advisers on the cross-border transaction.
Haigh commented: “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, 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.”