Castore snaps up heritage label Belstaff to drive global growth

Sportswear brand Castore has announced its intention to acquire Belstaff in a deal that intends to accelerate the joint international growth of both brands. The company said it has agreed to acquire 100 percent of Belstaff’s shares on a debt-free, cash-free basis. Financial terms of the deal were not disclosed.

As part of the transaction, Belstaff’s parent company, Ineos, a firm owned by businessman Jim Ratcliffe, will make a “significant strategic investment in Castore at a holding company level”.

Castore said its intention was to drive future growth across premium categories through both companies, capitalising on its own direct-to-consumer and online retail networks, as well as its global retail footprint and sports team partnerships.

In a statement, chairman of Belstaff, Ashley Reed, said the acquisition reflected a union of two British brands with “shared qualities of purpose-led design and entrepreneurial spirit”.

Reed continued: “Castore is disrupting the sportswear market and has demonstrated phenomenal growth and resilience in recent years. Having witnessed their journey, we saw a unique opportunity to join forces and accelerate Belstaff’s transformation through shared knowledge and resources.”

Castore’s co-founder and CEO, Tom Beahon, meanwhile, praised INEOS and Belstaff management for “steering the company back to profitability following a challenging period for the retail sector”.

He added: “To have the opportunity to take Belstaff through the next stage of its growth journey is a dream come true and a huge privilege.”

Financials tell tale of two halves

Belstaff, a British heritage brand founded in 1924, was acquired by Ineos from JAB Luxury GmbH in 2017, at which time Ratcliffe had said he wanted to champion British brands with a strong identity. Since the change of hands, the company has continued to encounter financial difficulties.

Things took a turn in 2023, however, when Belstaff returned to profitability. Despite auditors previously warning that the business remained reliant on support from Ineos, Belstaff was back in the black, reporting an operating profit of 2.1 million pounds, up from a loss of 14.3 million pounds in the year prior. Turnover, meanwhile, declined 3.4 percent.

For Castore, meanwhile, performance has remained strong. The sportswear label has continued to invest in its business in recent years, resulting in a loss in 2023. Sales, alternatively, rose 65 percent to 190 million pounds. The company has stuck by long-term growth ambitions, largely centred around expanding its store estate, growing its senior team and entering new international markets.