The founders of UK sportswear brand Castore are in talks to sell the company to US or Chinese buyers, seeking an investor to accelerate growth and provide an exit for high-profile backers. Brothers Tom and Phil Beahon, who co-founded Castore a decade ago, have received inbound interest from Chinese sportswear groups Anta and Li-Ning, as well as large US footwear brands. Anta and Li-Ning are viewed by Castore's leadership as the dominant sportswear forces in China.
The brothers' parents remortgaged their house to fund the startup, and the founders own a majority stake in the Manchester-based company. Castore was valued at £950 million in a funding round three years ago and has struck sponsorship deals with major sports teams. Potential sellers include Ineos founder Sir Jim Ratcliffe, former tennis player Sir Andy Murray, and the Issa brothers behind EG Group.
Despite the sales process driven by financial investors including Hanaco Ventures, Felix Capital, and Raine Group, the Beahon brothers plan to remain with the company. Tom Beahon stated they are not interested in exiting, preferring to build the business rather than retire. Castore's recent diversification into Belstaff and Grenson has been viewed as a reflection of troubles in its core sportswear business.
The company has faced criticism for football kit quality, losing contracts with Aston Villa and Newcastle United to Nike and Adidas. Talks with Anta and Li-Ning reflect the global ambitions of China's homegrown sports brands, which have acquired stakes in Puma and signed deals with stars like Steph Curry. A London listing is now off the table due to rocky market conditions for other founders.
Source: Financial Times Companies · Summarized by HeadlinesBriefing