Andy Murray-backed sportswear brand launches $200m fundraise

Castore, the British sportswear company supported by Sir Andy Murray, is in discussions with investors about a $200 million fundraise as it steps up its competition with Adidas and Nike on a worldwide scale.

According to media reports, the Manchester-based company, which was established by the Liverpudlian brothers Phil and Tom Beahon, is collaborating with bankers on strategies to obtain a sizeable cash infusion.

This past weekend, according to city sources, Castore hired Rothschild to advise it on the procedure.

Prior to a formal procedure later this year, preliminary discussions with potential investors have already started, they claimed.

Three-time Grand Slam champ Sir Andy has invested in the business as a shareholder since 2019.

He described it as “a new, vibrant company that provides something different, with products that are extremely nicely cut and created.”

He continued: “For me it was a natural transition from prior kit partners.”

The company, which primarily conducts business online, offers itself as a premium alternative to well-known rivals like Adidas and Puma.

With Premier League teams such as Newcastle United and Wolverhampton Wanderers, it has signed kit supply agreements.

The company is growing its footprint in a variety of sports, including cricket, golf, and Formula One thanks to a partnership with the McLaren squad.

Castore’s most recent debt financing, which took place last autumn, reportedly increased company value to £750 million.

Its borrowing capabilities were expanded as a result of the transaction to include lenders like HSBC and Silicon Valley Bank.

According to one source, if it sold shares as part of the fresh capital issue, it would probably seek a valuation of at least £1 billion.

The Issa brothers, who also jointly own Asda and the industry-leading EG Group, are also current shareholders in Castore.

Other supporters of the business include the creators of Pure Gym and New Look.

Bankers think Castore makes sense as it grows to float on the stock market in the medium term.

An insider predicted that the company will likely make roughly £30 million in profits this year.

People have prioritised their finances as the economy has become worse, Tom Beahon said in an interview with The Sunday Times last year.

Gregory Willis is an American columnist, journalist, editor, and author. Gregory worked in several positions in politics and government, including freelancing for publications like Benzinga and Seeking Alpha.

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