Modern Star is Australia’s leading B2B distributor of education resources to early childhood centres and schools, with a growing overseas presence via international schools in Southeast Asia. With over 10,000 SKUs, its core categories include arts & craft, mathematics, science, literacy and sport. Its customers are predominately school teachers and childcare centre managers that require educational aids that are essential to the learning process and development of children.
- Leading market positions in key subject verticals (~10-15% market share in each one)
- Scalable future growth – already transitioned its customer base to ordering via its market leading online trading platform, thereby enhancing its operating margins
- Defensive and stable industry with strong underlying drivers – education funding per student growing strongly; education resources forms a small but essential portion of school spend
- Highly capable and experienced management team that has a demonstrated track record
- Assisted with three domestic bolt-ons and one international acquisition to accelerate market share growth in strategic subject verticals
- Led commercial vendor review and procurement process for supply chain operations (inbound freight, domestic outbound freight, warehousing). Derived AUD 3 million in savings as well as improved customer service with DIFOT up to 98%
- Focused on building digital and brand marketing activities aimed at teacher engagement and community to provide added value beyond transaction
The Australian education system continues to receive strong support from the Federal Government with long term commitment to increase school funding over the next 10 years, as announced at the previous Federal Budget. With Navis assistance, the management team is focused on deepening the acquisition pipeline in the domestic space while expanding infrastructure initiatives (warehousing, branding) for the international acquisition in China.