Fast-growing household cleaning brand Fabulosa is planning for further expansion after securing extra funding from Instarmac Holdings, a group of “entrepreneurial-minded” manufacturing and distribution businesses based in the UK.
The multi-million deal has seen Instarmac Holdings take a 20% shareholding in Fabulosa, which was established in 2019 by co-founders Mike and James Sharpe.
The news follows Fabulosa’s impressive trading statement in February, which showed the firm had generated sales of £30m last year and was on track to hit £40m by the end of 2021.
The two companies stated that the move was a natural progression in their existing relationship. Instarmarc’s aerosol manufacturing facility in the group’s portfolio has been producing Fabulosa’s aerosol products for the past 18 months. Paul Butcher of Instarmac Holdings will now join the Fabulosa board.
The tie-up is expected to enable synergies between Fabulosa and Instarmac Holdings facility Aztec Aerosols, with their combined requirement of 12 million aerosol cans annually and ambitious international expansion plans.
To support the partnership, Instarmac Holdings has committed an additional £1.5m to the purchase of a state-of-the-art aerosol filling line, together with a further £0.5m spend for the construction of a warehouse extension to accommodate the increased capacity.
James Sharpe, co-founder of My Fabulosa Ltd commented: “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.”
John Holcroft, Group CEO of Instarmac Holdings, added: “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”.
