A candles specialist that supplies components used by thousands of independent producers has won multi-million pound backing for expansion from investors after enjoying a boom in sales, which has been fuelled by its success in Europe.
Candle Shack secured £4.4m investment from Maven Capital Partners after recording a five-fold increase in turnover over the past three years.
The company has capitalised on the growing popularity of candles among consumers around the world. Candle Shack said the kits it supplies are used by small producers to support thousands of niche home fragrance brands across Europe. The company also produces candles on a contract basis for international brands such as Italian homewares business Fornasetti.
Falkirk-based Candle Shack expects to create 50 jobs in the area of its home town in support of its push for further growth.
The investment indicates that Maven has great confidence in Candle Shack’s prospects even though the fallout from Brexit has posed big challenges for some firms that export to EU countries
Some have complained that the end of the free movement of goods between the UK and EU countries has left them facing huge administrative burdens.
The funding provided by Maven will be used to help Candle Shack expand its EU operations. This will include the opening of a fulfilment centre in the Netherlands.
The funding will also be used to help Candle Shack develop its sales and marketing function, to fund new product development and to improve operational efficiency.
Candle Shack chief executive Duncan MacLean said: “Maven’s investment in Candle Shack will fuel our next phase of growth, enabling us to better support thousands of niche home fragrance brands across Europe.”
He added: As with many other businesses, the additional complexity triggered by Brexit has resulted in some administrative change which for Candle Shack included the establishment of a Dutch subsidiary.”
Mr MacLean founded Candle Shack with his wife Cheryl in 2010. The company employs more than 100 people at its West Carron facility. This houses a development lab and manufacturing site.
David Milroy, a partner at Maven, said Candle Shack represented an exciting opportunity to invest in a well-established business led by a passionate and entrepreneurial team that has delivered impressive, profitable growth.
He noted: “Much has been achieved with limited marketing spend and the funding will help accelerate growth with investment in sales and marketing, stock, and logistics. We also look forward to supporting the business in developing its new fulfilment centre in the Netherlands which will allow for frictionless trade with the EU, removing additional cost for consumers and improving delivery times.”
In May Glasgow-based Maven was bought by wealth and asset manager Mattioli Woods, which has headquarters in Leicester.