A Yorkshire ingredients manufacturer has completed the acquisition of a Devon ingredients supplier in a seven figure deal.
Supplies For Candles, a Mexborough-based distributor of candle and soap making ingredients, has completed the purchase of The Soap Kitchen, a Devon-based supplier of personal care and soap making ingredients.
The transaction was supported by alternative lender, ThinCats, who provided a seven-figure funding package.
The acquisition of The Soap Kitchen, a £3.5m revenue supplier of cosmetic soap ingredients is expected to bolster the company’s combined revenue to £10m in the next 12 months.
Nicky Story, owner of Supplies for Candles, commented: “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 existing 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 advisors from Sentio Partners, Lupton Fawcett and Clarion Solicitors supported the shareholders on the transaction.
Andrew Barlow, director at Sentio Partners, said “It’s been a real pleasure to support Nicky 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 Nicky and the business through the next phase of growth”
Ben Kimball, director of regional business development at ThinCats, added: “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 Nicky 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.”