Mobeus backs Star Brands BIMBO

Alessia Argentieri
15 July 2019

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UK-based lower-mid-market private equity firm Mobeus Equity Partners has invested in British laundry and cleaning product manufacturer Star Brands by deploying a layered debt and equity package.

Unquote understands that the GP bought a majority stake in the company by deploying capital from Mobeus Equity Partners Fund IV, which held a final close on £166m in August 2017, surpassing its initial £150m target. The fund typically deploys equity tickets of £5-15m in UK-based SMEs operating across all sectors.

The equity invested in Star Brands amounts to around £10m, Unquote understands.

Star Brands' current managing director Tim North and marketing and M&A expert Henrik Pade will become joint managing directors as part of the deal, while Gavin Thomas will join the team as finance director and Nick Ward will be appointed as chair.

Company
Star Brands is a manufacturer of laundry and cleaning products, including household disinfectants, multi-surface cleaners, anti-bacterial solutions and stain removers. Its products are marketed under the Stardrops, The Pink Stuff, Wizz and Clean-ology labels. The company is headquartered in Leeds, has a manufacturing plant in Redditch and currently employs around 125 staff.

Star Brands generated EBITDA of £1.7m from revenues of £23.6m in the year ending on 31 August 2018 and expects to reach turnover of around £30m in 2019.

People
Mobeus Equity Partners – Ashley Broomberg (partner).
Star Brands – Tim North (managing director).

Advisers
Company – Dow Schofield Watts (corporate finance); Freeths (legal); Highwire Consulting (financial due diligence).
Equity – Squire Patton Boggs (legal); RSM (financial due diligence); BDO (tax); Pragma (commercial due diligence).