Star Brands

Branded and private label laundry and cleaning product manufacturer responsible for social media sensation, The Pink Stuff

Investment highlights

The Business

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.

The Deal

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.

The Plan

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.

Key facts

Sector

Consumer & Healthcare

Fund

Mobeus IV

Deal type

Management buyout

“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

The team

If you’re facing a similiar challenge, why not contact one of the team behind this investment

Ashley has been with us since 2001 and was one of the Partners who set up Mobeus when we completed a management buyout from the Matrix Group

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Ashley Broomberg

Managing Partner

Justin brings over 25 years’ experience of supporting private, growing businesses to his role leading the management of our portfolio.

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Justin Maltz

Partner

Dominic joined Mobeus in 2014. In his role as Investment Director he originates and executes new investments.

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Dominic Draysey

Investment Director