Sparkling deal as The Pink Stuff is snapped up by US firm
Household products group Star Brands, owner of the iconic The Pink Stuff, has been bought by New York listed, RPM International.
The acquisition of Leeds-based Star Brands will, RPM said, bolster its cleaning business, Rust-Oleum, with the addition of a ‘fast-growing and disruptive brand known for its innovative marketing’.
The deal sees an exit for private equity firm Mobeus which bought Star Brands back in 2019 when the business was primarily a manufacturer of private-label cleaning products for UK retailers.
The buyout reunited incumbent CEO Tim North with his former colleagues Henrik Pade, joint CEO, and Gavin Thomas, CFO.
Through savvy investment and strategic marketing, Star Brands, with backing from Mobeus, quickly capitalised on the emerging ‘CleanTok’ trend in social media, building a viral global presence with millions of followers.
The flagship Pink Stuff Miracle Cleaning Paste, celebrated for its outstanding efficacy, rhubarb fragrance and bold shelf presence, became a household staple across the globe.
During Mobeus’s partnership, the brand expanded to 118 countries, with the US emerging as its largest market, including partnerships with Walmart and Amazon.
In 2023, Star Brands acquired a US distributor, a highly accretive transaction that brought key American retail channels.
The company also expanded rapidly across Europe, propelled by partnerships with leading pan-European retailers like Action. Sales at the group have grown five-fold to £150m.
Henrik and Tim, along with the senior management team, are expected to stay with the business to ensure continuity and accelerate growth.
Frank C. Sullivan, RPM chairman and CEO, said “This acquisition aligns with Rust-Oleum’s vision to drive growth through leading consumer brands known for providing effective solutions in attractive end market.
“The Pink Stuff will strengthen our presence and scale in multiple sales channels, and, thanks to improvements we have made through our MAP 2025 program, we are well-positioned to support the brand’s growth globally. Additionally, we intend to leverage our consumer group’s expertise in category management and innovation to accelerate future growth. I would like to welcome Star Brands and its talented team to RPM.”
Mobeus partner Justin Maltz, said: “This has been a fantastic journey of accelerated expansion. We built a genuine partnership with Henrik, Tim and Gavin that was able to navigate the many challenges of rapid growth. It included the elements which Mobeus targets in every investment – a great team, international expansion, a transformational acquisition and a clear and aligned mission which we pursued relentlessly. We believe in the Power of Pink and look forward to seeing the brand continue its path to global leadership under its experienced and committed new owners.”
Mobeus and management were advised on the sale by the Leeds office of Freeths, the team included Dahren Naidoo, Fiona Woodhead and Farrell Tang. Other advisers on the deal included Houlihan Lokey (corporate finance) and Faegre Drinker (US legal).
