Yorkshire firm strikes deal with Devon soap supplies business
Supplies For Candles, a Mexborough-based distributer of candle and soap making ingredients, has completed the purchase of The Soap Kitchen, a Devon-based market leading supplier of personal care and soap making ingredients. The transaction was supported by alternative lender, ThinCats, who provided a seven-figure funding package.
Established in 2012, Supplies For Candles is a leading online supplier of candle and soap making ingredients to a rapidly growing craft industry, supplying a comprehensive range of fragrance oils, wax, and a wide range of ancillary products.
The acquisition of The Soap Kitchen, a £3.5m revenue supplier of cosmetic soap ingredients will cement the enlarged Business as a market leader in distribution of candle and soap making supplies in the UK and Europe, with combined revenue expected to approach £10m in the next 12 months.
Supplies for Candles owner, Nicky Story, added “This is a very exciting development for us and I’m looking forward to what this new chapter will bring, and in the team at ThinCats, we have the support of a strategic funder who share our appetite for growth. Both businesses have complementary customer bases and we expect that having a joined-up approach to sales will encourage overlap of candle and soap product sales.
“The Soap Kitchen was an attractive purchase, not only because of its financial success, but because of its loyal customer base and strong reputation as one of the leading hand-made soap manufacturers and ingredients stockists in the UK. As in our business, the exiting shareholders placed great emphasis on supplying high quality materials at reasonable prices with high quality customer service, and as such, a great fit as part of our newly formed enterprise.”
A team of Yorkshire based advisers from Sentio partners (Andrew Barlow), Lupton Fawcett (Daniel McCormack and Sarah Webster) and Clarion Solicitors (Ben Slack) supported the shareholders on the transaction.
Andrew Barlow, director at Sentio Partners said “It’s been a real pleasure to support Nick and the team through this acquisition, particularly given current challenges and the economic landscape. The Soap Kitchen represents the perfect strategic acquisition, given both the sector and cultural fit of the two businesses. With significant opportunities ahead, we’re excited to support Nick and the business through the next phase of growth”
Ben Kimball, director, regional business development, ThinCats: “It was a pleasure to work with Andrew and the team at Sentio once again. In such difficult times it is important that clients such as Nick and the Supplies For Candles team get the support they need for their growth plans. Not every business has been impacted by Covid-19 to the same extent, and we are delighted to be open for business for those who are resilient, and even growing through these unpretended times.”
