Ultra Finishing will use the funding for product development, expansion into new markets and to enhance its service proposition to accelerate organic growth.
Founded in 1981, the firm turned over £60m in 2016 and now employs more than 350 people. Its range of brands include Hudson Reed, Ultra and Premier.
BGF’s funding will be used to support the manufacture of new products, the first of which it plans to bring to market in Spring/Summer 2017, and to target new growth opportunities in Europe and the US.
Dave Cullen, CEO of Ultra Finishing said: “After a strong 2016, we are in a good position to accelerate our growth plans for Ultra Finishing and expand our international presence.
"The business has built significant scale over the past 30 years, and I would like to thank Stephen Heys and the wider team for their efforts in helping the business get to where it is today.
"We are looking forward to the next stage of growth with BGF as our long term minority partner, and are pleased to be joining a number of growing businesses in Yorkshire that are backed by them.”