Manchester-based Castore, the manufacturer of premium sports apparel, said it agreed to acquire Belstaff, the British premium heritage brand “on a debt-free, cash-free basis.”

The deal, the financial terms of which were undisclosed, will see Jim Ratcliffe’s Ineos, parent company of Belstaff, make a significant strategic investment in Castore at a holding company level.

“Castore and Belstaff will join forces to drive future growth across premium categories, capitalising on Castore’s direct-to-consumer and online retail networks and expertise, supply chain, growing global retail footprint and Castore’s roster of professional sports team partnerships,” said Ineos.

Belstaff chairman Ashley Reed said: “This is a union of two British brands who have come together through shared qualities of purpose-led design and entrepreneurial spirit.

“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.”

Tom Beahon, co-founder and CEO of Castore, said: “Belstaff is a truly iconic brand with unparalleled heritage, and I have personally been a huge fan for a very long time.

“Ineos and the management team at Belstaff have done a phenomenal job in steering the company back to profitability following a challenging period for the retail sector.

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

“We are also delighted that Sir Jim Ratcliffe’s Ineos is investing in Castore which is a demonstration of commitment to our business and global growth ambitions and we look forward to working together to deliver on this vision.”