The Business
At investment, Star Brands was primarily a supplier of own label cleaning and detergent products for UK retailers. Structural change in the grocery market enabled Star Brands to grow rapidly. However, the bigger opportunity was to reposition the business and build a challenger brand, The Pink Stuff, that took share from larger branded FMCG players.
The Deal
Mobeus invested £11.6m as a combined debt and equity package to fund a £14m BIMBO from private owners. There was a strong management team in place that had a track record of success. Mobeus introduced proven operator Nick Ward as Chairman as part of the transaction.
The Impact
Pink Stuff was repackaged and reformulated (with its now signature rhubarb fragrance). Star Brands used social media influencers to re-launch the brand which went viral, logging over 200 million monthly views and driving international growth – it is now sold in over 120 countries. The Pink Stuff was re-positioned outside the UK as a premium brand, and the range expanded to over 20 SKUs. In 2023 Mobeus led the acquisition of the US distributor which brought direct access to US retailers and almost doubled EBITDA. Over the investment, Star delivered growth of 5x in sales and 15x in EBITDA.
The Realisation
The business was acquired by RPM International Inc. for £345m (plus an earnout), a NYSE-listed company with global sales exceeding $7 billion and a diverse portfolio of market-leading brands such as Rust-Oleum, DAP, Carboline and Tremco.
