Starco Brands, Inc. announced on July 29, 2025, the execution of a non-binding Letter of Intent to acquire its contract manufacturer, The Starco Group (TSG). TSG is a private label and co-packing manufacturer with three facilities across the U.S., specializing in personal care, household, food, and beverage products. This proposed transaction aims to create a vertically integrated consumer products platform.
The acquisition is projected to provide greater scale on revenue and efficiencies on margin for Starco Brands. Under the proposed structure, Starco Brands, Inc. would be renamed "STARCO" and operate two main subsidiaries: Starco Brands and Starco Manufacturing. Ross Sklar, current Chairman and CEO of STCB and founder of TSG, will continue to lead the combined entity.
TSG brings a portfolio of private label and co-packing revenue from third-party brands and retailer-owned brands, along with R&D and manufacturing expertise across various verticals. Its facilities include Four Star Chemical, BOV Solutions, and Temperance Distilling. This vertical integration is expected to provide ownership of a significant portion of STCB's supply chain, expanding margins and layering in new recurring revenue streams.
The transaction is expected to benefit STCB's current branded portfolio companies, including Skylar Beauty, Whipshots, Winona, and Art of Sport, through enhanced operational control and cost efficiency. The proposed acquisition is a significant milestone for STCB, aiming to further its scale, R&D capabilities, and product offerings. The closing is anticipated in Q4 2025, subject to due diligence and regulatory compliance.
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