Wool trading group looks to the future with £13m banking facility

Bradford-based Standard Wool UK (SWUK), a group of four companies, secured the asset-based facility from KBC Business Capital, a division of Belgian group KBC Bank. The facility will provide ongoing working capital.

SWUK is one of the world's leading wool trading businesses, with a branch in Italy and wholly-owned subsidiaries in Chile and New Zealand.

"This will enable us to go forward with renewed confidence and continue to provide quality-assured wools to our clients worldwide," said SWUK chief executive Paul Hughes.

Its work includes wool processing or 'commission scouring' for third-party wool merchants, supply of home-scoured wool to spinners and manufacturers, supply of broken tops to spinners and manufacturers, plus the sale of greasy or scoured wool and Chilean products.

Alistair Hood, regional director for KBC Business Capital, said: "Since meeting the management team at Standard Wool we have worked hard to maximise the funding available to the business.

"This will ensure they are able to make the best use of their market knowledge and experience to consolidate their position as the number one buyer of wool in both the UK and Chile. Despite the difficult market conditions the team have proved more than able to adapt and deliver a strong trading performance."

SWUK has customers in more than 30 countries and employs over 150 people in West Yorkshire and at sites in New Zealand, Italy, Chile and China.

The transaction was led by Anthony Barrett and Simon McIntosh of Grant Thornton's lead advisory team in Leeds. The law firm also provided due diligence to KBC.