Star Brands is a manufacturer of private label, licensed and branded laundry and cleaning products selling to all the major Grocers in the UK including the Multiples (such as Tesco, ASDA, Sainsbury’s), Discounters (notably Aldi and Lidl) and the Bargain Stores (including Home Bargains, Poundstretcher and B&M). Star Brands is headquartered in Leeds and has a manufacturing plant in Redditch. It currently employs 125 people.
Mobeus has invested £11.6m as a combined debt and equity package to fund a BIMBO from the current owners. There is a strong management team in place that has a track record of success, having trebling turnover at PE-backed food manufacturer Symingtons between 2007 and 2012. Mobeus introduced proven operator Nick Ward as Chairman as part of the transaction.
We are backing a high quality, proven team to capitalise on a market with favourable growth drivers for private label: the Discounters have aggressive store rollout plans and are winning grocery market share, which is increasing the size of private label in this category; at the same time the Multiples are responding to competitive pressures and customer demand by increasing their range of private label products. Star will also continue to develop higher margin licensed products and expand its own range of brands. The business has identified a substantial opportunity in specialist brands with product differentiation; social media favourites Stardrops and The Pink Stuff are leading the way.