A 20% stake has been bought in a Cheshire-headquartered cleaning products maker in a multi-million pound move by a group of manufacturing and distribution businesses.
Fabulosa, which was co-foundered by dad and son team Mike and James Sharpe, is now set for further expansion following the deal with Tamworth-based Instarmac Holdings.
The company has its head office and two factories in Crewe and a third in Shropshire and reported a revenue of £30m for 2020 recently.
It is now aiming to achieve a revenue of £40m by the end of 2021.
Paul Butcher of Instarmac Holdings will now join the Fabulosa board.
Instarmac Holdings has also committed an additional £1.5m for the purchase of a state-of-the-art aerosol filling line, together with a further £500,000 for the construction of a warehouse extension to accommodate the forecast increased capacity.
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John Holcroft, group chief executive of Instarmac Holdings, said: “As a major supplier to Fabulosa, we built up a close relationship, and are extremely impressed with the management’s highly innovative, dynamic and consumer-focused approach.
“They have created major disruption in a mature and very static sector, and are continuing to grow at a rapid level.
“We are now looking forward to supporting the board with their onward journey.”
James Sharpe added: “This is a pivotal move for our brand, and testament to how far we have come in such a short space of time.
“The business is hungry and gearing up for further significant expansion. There is a strong cultural fit between the two businesses, and we are incredibly excited about the prospect of what we can now achieve jointly with Instarmac Holdings, particularly with the synergies we can drive through both businesses and our ambitions for international growth.”