The Manchester-based sportswear firm supported by Sir Andy Murray is working with Rothschild to finance approximately $200 million to fund its expansion.
Castore, the British sportswear company funded by Sir Andy Murray, is in discussions with investors on a $200 million investment round as it escalates its competition with global competitors Adidas and Nike.
The Manchester-based company, established by the brothers Phil and Tom Beahon of Liverpool, is collaborating with bankers on plans to seek a substantial financial injection.
This weekend, city sources reported that Castore had hired Rothschild to advise it on the procedure.
According to them, preliminary discussions with prospective investors have already begun ahead of a formal procedure later this year.
Since 2019, the three-time Grand Slam champion Sir Andy has been a shareholder in the company.
At the time, he referred to it as “a fresh, dynamic company that offers something unique and things that are well-cut and created.”
“It was a natural transition from my previous equipment partners,” he noted.
The company, which primarily distributes online, offers itself as a high-quality alternative to established competitors such as Adidas and Puma.
It has partnered with Premier League clubs such as Newcastle United and Wolverhampton Wanderers to provide uniforms.
Additionally, the brand is expanding its influence in sports like cricket, golf, and Formula One, where it has a partnership with the McLaren team.
Castore was reportedly valued at £750 million after its most recent debt financing in the fall of last year.
This transaction expanded its borrowing capabilities to include HSBC and Silicon Valley Bank.
One source speculated that it might seek a valuation greater than £1 billion if it sold shares as part of the fresh capital round.
Existing Castore shareholders include the rich Issa brothers, who jointly run Asda and the gasoline forecourts behemoth EG Group.
Additionally, the creators of Pure Gym and New Look are among the company’s investors.
As Castore expands, bankers feel it is a reasonable contender for a public market IPO in the medium term.
This year, according to an insider, the corporation is anticipated to generate earnings of around £30 million.
Tom Beahon told The Sunday Times last year, “As the economy has deteriorated, people have tightened their spending.”
“They continue to spend, but only on goods that excite them”.
We sell merchandise to the fervent supporters of professional sports teams.
For supporters of team sports, purchasing a jersey or jacket for their child is not a discretionary decision.
This weekend, Castore declined to comment on its latest financial intentions.
