Mobeus backs Gro Group MBO

Mobeus's investment in Gro will both finance the transaction and provide additional growth capital. HSBC provided working capital funding for the business.

Local corporate finance boutique Isca Ventures arranged the transaction on behalf of the management team. Mobeus told unquote" it was not an auction in the true sense but a very competitive process which saw the deal shown to a reasonable number of PE backers. The original founders of the business, who sold Gro as part of the transaction, were advised by Momentum Corporate Finance.

Mobeus most recently provided a further £3.2m to portfolio company Motorclean as part of a £5m funding round in February.

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 32 people. Managing director Christian Jones has increased company earnings by 418% in his first two years and is on track to achieve an increase of 680% by the end of June 2013. Gro product sales have increased by 77% since 2010, producing an estimated 2013 turnover of approximately £12m.

People
Mobeus partner Bob Henry will take a seat on Gro's board following the transaction. Gro's management team is led by managing director Christian Jones.

Advisers
Vendors – Momentum Corporate Finance (M&A); Ashfords (Legal).
Management – Isca Ventures (M&A).

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• Topics
• Buyouts
• Consumer
• UK / Ireland
• Mobeus Equity Partners