British sportswear firm Castore set for near £1bn valuation after £145m injection

Castore are today set to announce a cash injection that will see the sportswear brand valued at nearly £1bn.

The British clothing manufacturer, backed by the likes of Andy Murray and who provide kit for Aston Villa, McLaren and others, has struck a deal to raise £145m from a number of investors including the Raine Group, Hanco Ventures and Felix Capital.

The US merchant bank Raine Group are advisors for the sale of the reported 25 per cent of Manchester United from owners the Glazers to British billionaire and Ineos founder Sir Jim Ratcliffe and were key in the sale of Chelsea from sanction-hit Roman Abramovich to an American group fronted by Todd Boehly.

Having reported revenues of nearly £50m in the year ending January 2023, with a pre-tax profit of £8m in its 2021-22 accounts, Castore co-founder Tom Beahon told City A.M. earlier this year that triple-digit growth was on the cards.

“I don’t know how many people have achieved triple-digit revenue growth and combined that with improved profitability,” he told City A.M.

“We’re now challenging ourselves to get to £500m in revenue. The answer we’ve come up with is that now is the time to focus on growth internationally.

Rothschild were earlier reported to have been appointed to manage the capital-raise with Castore being valued at £750m after debt financing in 2022.

“We are delighted to have secured the backing of highly reputable equity partners that will add
significant value to all aspects of Castore’s business model – our team relationships, our sportswear
brand and our omni-channel retail operations,” Castore founders Tom and Phil Beahon said.

“We are confident these are the right investors to take us to the next stage of our growth, who share our passion for high quality sports apparel, and, in addition to capital, will bring expertise and access to new markets.”

Jason Schretter, partner of The Raine Group, said “Castore is an insurgent sportswear brand that
sits at the intersection of sports, premium brands, data analytics and e-commerce.

“Raine and our fellow co-investors’ deep expertise across these industries helped us immediately understand the impact Castore can have on its clients.

“Sports teams and leagues are among the most cherished brands in the world. They deserve comprehensive and bespoke solutions to help them better connect, engage and monetise their global fan bases. Castore’s differentiated combination of high-quality merchandise and data-driven technology solutions is the answer sports franchises need to unlock this massive opportunity.”