Heritage Cashmere is a design-led manufacturer and supplier of luxury scarves and knitwear. It was founded in 1997 and is headquartered in Halifax, West Yorkshire. Much of its production is carried out in the Far East and is managed through Prodesse Limited, a Hong Kong based group company.
BHP Corporate Finance structured and advised on the successful MBO which sees Group CEO Andrew Sykes acquire a majority share in the business from founder John Kaye, who remains involved in the business in the role of chairman.
BHP Corporate Finance helped secure a bespoke funding package to support the transaction from alternative finance provider, ThinCats, which will allow the group to continue to grow into new markets. The international nature of Heritage’s operations involved the BHP Corporate Finance team advising on a range of cross-border transactional matters which were unique to the business.
Andrew Sykes, who led the MBO, commented: “The support BHP Corporate Finance offered during the MBO process was invaluable. They understood our business and were able to suggest a deal structure and arrange a bespoke financing package that really worked for us. We wouldn’t hesitate to recommend them.”
Andy Haigh, partner, who led a team comprising Juel Chowdhury and transaction tax partner, Paul Captieux added: “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. We were able to identify these issues and work with prospective funders to accommodate them, delivering a highly suitable financing package. Naturally we wish John, Andrew and all those involved in the business the very best for the future.”
The successful completion of the Heritage transaction reflects a busy start to 2019 for BHP Corporate Finance and is one of many transactions advised upon featuring cross border aspects. Our deal flow remains strong and there will undoubtedly be more news to come in the near future.