Mobeus sells Gro Company to trade for £22m

The sale has generated a total return of 2x money for Mobeus and an IRR of more than 20% after a holding period of almost five years.

Under Mobeus' ownership, sales have increased from approximately £12m in 2013 to £15.3m with an 8% EBITDA margin in 2016.

The GP said it has worked alongside the management team to professionalise and expand the business to prepare for its next phase of growth.

The founders gave themselves the target of 10 years to get the UK from 0% to 80% baby sleeping bag usage, and claim to have achieved this in the space of five years. The company has also launched internationally and its products are now available in 25 countries.

Previous funding
Mobeus were introduced to Gro by Exeter-based corporate finance boutique Isca Ventures. The GP invested £7.1m as a combined debt and equity package in the firm's buyout in March 2013.

Company
Devon-based Gro specialises in baby sleeping bags, focusing on its lead product Grobag. The business was founded in 2000 by Rob and Ouvrielle Holmes, who brought the concept to the UK from Europe, and today employs 47 people. In 2016 it generated sales of £15.3m with an 8% EBITDA margin.

People
Mobeus Equity Partners – Guy Blackburn (portfolio director).
Gro Company – Dave Gough (COO).

Advisers
Vendor – Momentum Corporate Finance (corporate finance); Michelmores Solicitors (legal).

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• Topics
• Exits
• UK / Ireland
• Consumer
• Trade sale
• Mobeus Equity Partners
• United Kingdom