“We liked the balance struck by Mobeus – enough involvement to provide insight, but with a willingness to let the management team run the business.”
Christian Jones, Managing Director
The Gro Company specialises in baby sleep products. It is the only sleep brand recommended and endorsed by the Lullaby Trust, the leading safe sleep charity in the UK researching into the prevention of infant cot death. Its products have won numerous awards for innovation, value and quality.
The Gro Company was already a successful business with an impressive track record. However, it was looking for funding to help buy out the previous owners so the management team could continue its growth plan for further expansion in the UK and internationally.
How VCTs helped
In 2012 and 2013 funds managed by Mobeus Equity Partners provided £7.1m of funding, allowing the management team to acquire the company. It also provided additional working capital to help change the distribution model in one of its most important overseas markets, Australia. Mobeus helped to recruit a new Chairman with extensive experience of brand development to assist the company with its next phase of growth.
Today, the company continues to consolidate its position as the number one brand in children’s sleep products in the UK, Australia and Canada. It has a turnover of £12m and employs 32 staff in the South-West of England. With VCT investment, the company has been able to fast-track the latest addition to its product range, the Gro-hush, a unique portable white noise baby calmer. The additional funding provided by Mobeus to help the company move to a ‘direct supply’ model in Australia has helped to increase underlying earnings by c£1m.