Leading UK yarn spinner returns to private ownership after turnaround

Finance facility secures secondary buyout of carpeting specialist

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The UK's largest woollen yarn spinner, Lawton Yarns Ltd, has returned to private ownership.

Headquartered in Ravensthorpe, West Yorkshire, the £34 million turnover business supplies carpet manufacturers around the globe, employing more than 250 people.

Originally a family-owned business, a turbulent trading period in 2019 saw the parent group enter insolvency, with the manufacturer acquired by Breal Capital, a turnaround specialist.

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A £13.4 million deal with Secure Trust Bank Commercial Finance has funded a secondary buyout, with the facility to cover additional working capital and growth support.

Tim Kay, managing director at Lawton Yarns Ltd, 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."

The company was established in 1902 by Fred Lawton, and was originally based at Lockwood Mills, and later Firth Street, eventually moving east to the Dewsbury site - home to many textile mills.

Carlton Siddle, chairman, said: "The support that we have received from 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."

The latest annual report told how demand remained strong as "home improvements contunue to attract disposable income".

Having returned to profit it continues to focus on operational efficiencies.

John Gribbon, regional managing director for Secure Trust, 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."