A Yorkshire company which made hats for Winston Churchill and now has a £40m turnover business producing children's dressing-up costumes has undergone a £21m management buyout (MBO).

Historic hatmaker Christy Group, based in Barnsley, is the UK's leading designer, importer and distributor of chilren's dress-up costumes with the pan-European licence for Disney outfits and customers including Asda, Tesco and Marks & Spencer.

It only launched the dress-up business six years ago and it is expected to contribute sales of about £30m to the business this year.

Christy Group exports to 40 countries and has overseas customers such as Spanish department store chain El Corte Ingles.

The firm's tie-up with Disney has helped boost sales particularly after the success of Hollywood blockbusters such as the Pirates of the Caribbean series, as well as enduring classics such as Snow White and the Seven Dwarfs and Cinderella.

Barlcays Ventures backed the MBO by chief executive Jules Hydleman, managing director Gary Panons, sales director Tony Lewis and financial director Andy Pybus in purchasing the business from its owners, a group of private shareholders who have also re-invested to take a minority stake in the business.

Mr Hydleman joined the firm as sales director 15 years ago when it was the West Riding Hat Company - despite being based in South Yorkshire - before it was taken over by Christy. He said "We are immensely proud of this business. Whichever country you sell to, children are children. The growth in computer games over the last few years has done nothing to diminish children's appetite for dressing up. Our proposition is to continue to respond to this demand by bringing high quality innovative products to the market at affordable prices. We are all very excited about our further expansion worldwide."

The costumes made by Christy sell for between £10 and £20 at major high street stores and include popular Disney characters such as Winnie the Pooh, Dumbo, Bambi and Buzz Lightyear.

This, and the popularity of Halloween, which has seen a 10-fold spending increase over the past five years in the UK according to Planet Retail, has helped it gain a 60 per cent share of the UK market for children's dress-up.

Barclays Ventures regional director Andy Lees said: "Christy's expansion in the last six years has been extremely impressive. The team has led the development of the dressing-up market in the UK and is the clear market leader."

"There are exciting opportunities available throughout Europe, in emerging markets and beyond and we look forward to supporting the team achieve this growth."

The Yorkshire market is a good one and we are aiming to do more deals here. "Steve Shaw, regional corporate director of the Royal Bank of Scotland, which provided senior debt and working capital facilities, added: "Christy's is a longstanding and valued customer of the bank and we are delighted to be assisting Jules and the team in the next exciting stage of the group's development."

Christy was founded by Miller Christy in London in 1773. Customers who have bought headwear in its distinctive red hat boxes include Winston Churchill and Harrison Ford wore a Christy fedora in the Indiana Jones series of films.

In addition to its Barnsley head office, Christy has offices in Hong Kong, China and Europe. It employs more than 220 people worldwide and its operations extend to over 40 countries. It manufactures hats in Oxfordshire.

Christy was advised by Manchester corporate finance house Rickitt Mitchell and management by Jonathan Priestley of Lee and Priestley.