Debt and equity finance support has been provided to baby products business Gro Group though a management buy-out.
VCT manager Mobeus Equity Partners has backed Gro Group by way of a management buy-out (MBO) to grow its market position.
Devon-based Gro Group has developed and retails baby products including sleeping bags, temperature devices, swaddles and clocks.
The business, which is led by managing director Christian Jones, is targeting growth in the UK and internationally and has a reported turnover of £12 million.
Under the terms of the deal, Mobeus Equity Partners has provided funding to finance the MBO, as well as providing additional growth capital. HSBC has provided working capital funding for the company.
Jones comments, ‘The management buy-out 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 foundations laid by the management team over recent years and are excited about our future growth plans, both in the UK and worldwide.’
Gro Group products are available at high street retailers including Mothercare, John Lewis, Babies R Us and through online channels Amazon and Kiddicare.
The business was founded by Rob and Ouvrielle Holmes in 2000 after the birth of their first child, Sam. The two set up offices and grew the business to a turnover of £2.8 million and pre-tax profits of £90,000 in two years.
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Bob Henry, partner at Mobeus Equity Partners, adds, ‘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.’
London-based Mobeus Equity Partners‘ most recent deal came when it further supported the growth plans of portfolio car valeting business Motorclean by providing £3.2 million, backing a new acquisition. The firm, which was previously known as Matrix Group before a July 2012 MBO, advises four Income & Growth VCTs and has some £150 million of funds under management.