Another Mobeus investment is born
Image provided by former portfolio company, Image Source (www.imagesource.com)
Mobeus Equity Partners (“Mobeus”) has provided combined debt and equity finance to support the management buyout of Gro Group, the Devon-based nursery brand. Mobeus Equity Partners has provided funding to finance the transaction as well as providing additional growth capital. HSBC has provided working capital funding for the business.
Founded in 2000, Gro Group is responsible for the original and now internationally renowned Grobag, the number one baby sleep bag brand.
As market leader within the sleep category, the business has grown rapidly in the UK and internationally under the leadership of Managing Director Christian Jones, with turnover now £12m.
Bob Henry, Partner of Mobeus, commented “We are very pleased to be able to support another South West based business with a flexible funding solution which provides a solid platform for the business to continue to grow. We have every confidence the management team will maximise the potential of this unique global brand.”
“The management buyout will enable us to achieve our vision of The Gro Company becoming the number one global provider of safe sleep solutions. We are keen to build on the foundation laid by the management team over recent years and are excited about our future growth plans, both in the UK and worldwide.” said Christian Jones, Managing Director of Gro Group.
“Over the years our partner team have worked on a number of MBOs and subsequent exits for Mobeus and we are delighted to continue with this involvement with the MBO of Gro Group. It is pleasing that Mobeus have and continue to show a real commitment to the South West region." added Mark Champion from Isca Ventures, who acted as the lead advisory on this transaction.
The management team was advised by Devon-based corporate finance boutique Isca Ventures, with legal support provided by Michelmores. Mobeus Equity Partners provided a combined debt and equity funding package to both finance the transaction and provide additional growth capital. HSBC has provided working capital funding for the business.
The management buyout facilitated an exit for the original founders of the business, Rob and Ouvrielle Holmes, with the vendors being advised by Momentum Corporate Finance and Ashfords.
The management team is led by Christian Jones; incoming Chairman Jules Hydleman and Mobeus Partner Bob Henry will also join Gro Group’s Finance Director Dave Gough on the Board.
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