The UK's largest woollen yarn spinner, Lawton Yarns Limited, has returned to private ownership following a £13.4m total facility from Secure Trust Bank Commercial Finance. The facility funded the recent management buyout and will provide additional working capital and growth support to the business.
Headquartered in Ravensthorpe, West Yorkshire, Lawton Yarns supplies woollen yarn to all major carpeting manufacturers in the UK and exports to Europe, Asia, and America. Without them, the UK market would be reliant on international imports.
The facility represents a secondary buy out to return the business to private ownership. Originally a family-owned business, Lawton Yarns experienced a turbulent period in 2019 which saw its parent group enter insolvency. The yarn manufacturer was later acquired by Breal Capital in 2020.
This MBO means greater stability for the supply chain into the UK woollen carpet manufacturing industry.
The facility provided by Secure Trust Bank Commercial Finance will support Lawton Yarns as it takes a long-term view to serve the woollen carpet industry. Secure Trust Bank Commercial Finance is part of the UK Finance IFABL and provides Asset-Based Lending to businesses across the UK.
Tim Kay, Managing Director at Lawton Yarns Limited, said: "Lawton Yarns, like many businesses, traded through the issues posed by the pandemic. With the support of our customer base, we maintained our position within the supply chain of the woollen carpet industry."
Carlton Siddle, Chairman at Lawton Yarns Limited, added: "The support that we have received from John, Paul, Colin and the wider team at Secure Trust Bank has allowed the business to return to private ownership. The commercial finance team understood our vision for the company and worked quickly to create the facility that's right for our future. This MBO will stabilise Lawton Yarns and enable the business to tackle and overcome any future challenges."
John Gribbon, Regional Managing Director of Yorkshire and the North East, at Secure Trust Bank Commercial Finance, said: "Lawton Yarns is an integral part of the UK carpet manufacturing industry. Without it, the UK market would not exist. We've enjoyed working closely with the management team and seeing its passion to return to private ownership first hand. We understood how important it was to the business to create an appropriate facility quickly. With this facility in place, Lawton Yarns will continue to support the woollen carpet industry as they have throughout their long history."