Deal focus: Glow chooses B2B supplier for debut deal

It took almost two years for Australia’s Glow Capital Partners to secure its first deal. During that period, the consumer and brands-focused private equity firm looked at around 300 companies. So, now that the debut has finally come, it’s reasonable to infer that it epitomizes the Glow sweet spot.

Justin Ryan, a former managing partner at Quadrant Private Equity who co-founded Glow in 2021, identified the company in question: an Australian uniform supplier called Cargo Crew that specializes in restaurant apparel such as aprons and chef whites.

As a B2B brand in the consumer sphere, Cargo Crew is slightly under the radar yet not without a public-facing presence. Its website, geared toward hospitality business owners and procurement professionals rather than the general public, has the veneer of a premium fashion brand.

The profitable company has been bootstrapped since 2002 but appears to be on the cusp of a scaling breakthrough. Overseas orders are starting to become meaningful – mostly from the US – amidst some high-profile branding coups.

Most importantly, Los Angeles-based celebrity chef Curtis Stone is a fan and has come on board as a brand ambassador, outfitting all the staff at his restaurants in Cargo Crew uniforms. That exposure is being amplified by Netflix Bites, a media-savvy pop-up restaurant concept featuring Stone. Cargo Crew is the official outfitter.

“This is a business that has been built with a lot of love over 20 years, and it has great relationships with its customers. That’s key for us,” said Alex Downie, an associate director at Glow who will join the Cargo Crew board alongside Ryan and Glow co-founder Kate Morris.

“One of the hardest things you can do is to find, hire, and retain staff, and making people wear things that are uncomfortable or unflattering does weigh on them. When you think about the expense of employees versus the cost of a uniform, it’s worth it.”

Glow has acquired a 51% stake in Cargo Crew, although the company’s existing leadership retains full management control. The private equity firm’s three seats on the board give it a majority out of five, however, securing ultimate control over its destiny in terms of liquidity events and emergency manoeuvres.

Financial terms were not disclosed: Glow is mandated to acquire businesses with enterprise valuations in a range of AUD 30m-AUD 120m (USD 20m-USD 81m). It is investing via its debut fund, which reached a first close of AUD 55m last April on a target of AUD 300m, including AUD 150m for co-investment.

Glow’s expertise in brand building is intended to support the buildout of a US sales team and various digital marketing initiatives. Ryan’s experience could prove the most relevant. His investments at Quadrant spanned industrial brands and clothing, and he is chairman of Vaikobi Ocean Performance, an athletics apparel maker.

Building up name recognition outside of Australia is an immediate priority. About 25% of sales – annual revenue is currently north of AUD 20m – currently comes from overseas. The US is the main target, but interest is being fielded as far afield as South America.

“One of the things we like about the management team is that they’re really proactive. During our due diligence, they helped to identify a new head of marketing and a new head of sales that have already started,” Downie added. “Historically, this was a business with no real outbound sales function, so there’s a lot of things to do there.”

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• Topics
• Australasia
• Support services
• Consumer
• Buyouts
• Australia
• Glow Capital Partners
• food & beverage