Mobeus Equity Partners has sold The Gro Company, a market leader in baby safe sleep products, to Mayborn Group, the owner of the tommee tippee brand, for an enterprise value of £22m.
Known as the “official baby sleep bag” brand, Gro’s founders gave themselves a target of ten years to get the UK from 0% to 80% baby sleep bag usage but managed it in just five. The business has continued to be successful since a Mobeus backed management buyout, with Gro launching a variety of new products and expanding internationally to sell in over 25 countries worldwide.
Mobeus initially backed the MBO of Gro in March 2013, following an introduction from Exeter-based Isca Ventures, and has invested £7.1m as a Combined Debt and Equity package. The private equity firm has worked alongside the management team to professionalise and expand the business to prepare for its next phase of growth. The deal represents a total return of over 2x money for Mobeus-advised funds and an IRR of over 20%.
Guy Blackburn, the Mobeus Portfolio Director who led the exit, commented, “This investment has proved to be a great success. In the last four years everyone involved has worked hard to ”Gro” the business, whilst continuing to place product excellence and customer trust at the heart of everything it does.”
Chairman Jules Hydleman said, “The business has been on an amazing journey over the last few years and has been at the forefront in developing better sleep safety for babies and infants.”
Momentum Corporate Finance and Michelmores Solicitors provided advice to the shareholders.
“Gro has become a world class business that will continue to thrive under new ownership. With Mobeus’s support, we have been able to unlock Gro’s wider potential and achieve great things.”Dave Gough
Gro, Chief Operating Officer