Private Equity Case Study

Freeths Private Equity Team advised on the management buy in/buy out of the Star Brands Group backed by Mobeus, a leading UK private equity firm, through a layered debt and equity package.

Our client

Star Brands Ltd, is a multi-million turnover branded and private label laundry and cleaning product manufacturer responsible for social media sensation, The Pink Stuff – capitalising on the cleaning zeitgeist embodied by Instagram phenomena like Mrs Hinch and driven by a spotless focus on channel development and specific liquid detergents, Star Brands is projecting an impressive growth in turnover.

The management buy in/buy out had previously worked together at a private equity-backed convenience food manufacturer, and first approached Freeths in 2018 to provide legal support on the proposed management buy in/buy out with the aim of providing strategic advice on both acquiring the group and negotiating legal terms with a preferred funding partner.

The deal

Working with the management buy in/buy out team’s corporate finance advisers (Dow Schofield Watts), the Freeths team helped the management buy in/buy out team in negotiating legal terms with both Mobeus and the former owners of Star Brands and then provided legal advice on a usual suite of equity and funding documents with Mobeus (including articles of association and a shareholders’ agreement and implementing the legal steps of a desired holding company structure) as well as proving advice to a “newco” acquisition vehicle on the acquisition of Star Brands (conducting a full legal due diligence exercise and a usual suite of acquisition ancillaries including a sale and purchase agreement).

How we added value

Freeths leveraged its private equity experience to deliver commercial solutions and to achieve the project in the desired timescale and budget.

The team was led by Dahren Naidoo, supported by Andy Francey, Fiona Woodhead and Megan Atack and since the completion of the management buy in/buy out, Freeths has continued to support Star Brands on various legal “day to day” matters including a refinancing supported by Barclays Bank.