The founders of Gro Group have sold the business to the company’s management team led by Christian Jones. The buyout of the Devon-based business has been backed by Mobeus Equity Partners.
Originally founded in 2000, Gro Group was responsible for baby sleep bag, the Grobag. The business has grown rapidly both in the UK and internationally over recent years, providing a range of “safe sleep solution products” for babies and young children, with a turnover of about £12m.
The management team was advised by 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 as well as providing additional growth capital. HSBC has provided working capital funding for the business. The vendors were advised by Momentum Corporate Finance and Ashfords.
Jules Hydleman comes in as chairman and Mobeus partner Bob Henry will also join Gro Group’s finance director Dave Gough on the board.
Jones said: “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 on a worldwide platform.”
Henry added: “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 full potential of this unique and global brand.”
Jones added: “Isca Ventures was instrumental in putting our management buy-out together. Its partner team delivered value and exceeded our expectations at every stage of the process. We look forward to the partner team continuing to be part of our journey at Gro Group.”