Branded and private label laundry and cleaning product manufacturer responsible for social media sensation, The Pink Stuff
Mobeus VCT Fundraising
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.
“This is a really exciting time for the whole team at Star Brands, who have grown the business over the past few years by listening to what our customers and consumers need and acting accordingly.
"To maintain this momentum, we all recognise the critical importance of constantly developing and evolving, and I really look forward to working again with both Henrik and Gavin and the added impetus I know their arrival will bring to the rest of the team. Having worked closely with Ashley and his team at Mobeus in concluding this deal I have been very impressed by their passion for the Star Brands business and see them as an excellent partner for the next chapter.”
Tim North, Star Brands MD