Sykes takes control at Heritage Cashmere after £5.5m MBO deal
SCARF AND knitwear firm Heritage Cashmere has completed a £5.5m management buyout.
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.
Twenty-two-year-old Heritage Cashmere is headquartered in Halifax and is a supplier of luxury cashmere products to the retail marketplace and premium, international fashion brands.
It has a production base in the Far East managed through Prodesse Limited, a Hong Kong based company.
The deal was supported with a £2.75m cash injection from fintech lender ThinCats.
Mr 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.
Mr Haigh said: “There were a number of unique factors to the business, which meant it wasn’t a straightforward funding ask.
“However, Thincats demonstrated an ability to work with us to accommodate these factors and deliver a highly suitable financing package.”
Ben Kimball, director regional business development at Thincats, said: “We wish Andrew and the team every success with the venture and their next stage of growth.”