HNH acted as Lead Corporate Finance Advisor for rapidly growing eCommerce business Candle Shack in a £4.4m deal. Candle Shack, founded by Duncan and Cheryl MacLean in 2010, supplies candle making components as well as providing contract candle manufacture for high profile, luxury brands. The transaction includes £3 million of funding from Maven’s high net worth investment syndicate, Maven Investor Partners, as well as a £1.4 million debt facility from HSBC.
Neal Allen, Director in the Corporate Finance team at HNH, said: ‘One of the reasons that we established HNH in Scotland was to advise exciting, fast growing businesses and it has been fantastic to work with such a great example in Candle Shack. The deal is a validation of not only all of the inspiration and perspiration that Duncan and Cheryl have put in over the last few years, but also of the Scale Up programme and the next wave of entrepreneurs that are helping to drive the Scottish economy forward. ‘
Candle Shack employs 105 staff and operates from its 100,000 ft2 West Carron facility in central Scotland encompassing a fulfilment centre, development lab and manufacturing. The Company provides everything for an artisan manufacturer to make high quality candles, including fragrances, waxes, wicks, glassware, and bespoke branded packaging. Making fine candles is a technical endeavour and many of Candle Shack’s customers rely on the business for support, training, accreditation and for the testing of their candles. In addition, the company serves clients who require contract candle manufacturing services where the company deploys state of the art technology and artisan craftsmanship to produce candles for some of the world’s leading luxury brands.
The company is regarded as the market leader in Europe currently serving over 34,000 loyal customers and has a reputation for high quality products and excellent customer support. Candle Shack has enjoyed strong sales growth over recent years benefiting from its focus on the premium and artisan segments of the market. Consumers are looking for unique, locally produced premium products at affordable prices and this is increasingly being met by artisan candle makers many of whom are Candle Shack customers. The company is also working hard to offer candle ingredients that are sourced sustainably, and this includes its best-selling own-brand, environmentally friendly wax blend.
Maven’s support will enable management to further scale the business, investing in new marketing and sales channels, expanding its EU operations, financing further product development, and improving operational efficiencies to enable Candle Shack to grow its customer base, broaden its offering and continue to offer customers a best-in-class service.
Duncan MacLean, CEO at Candle Shack, said: “Maven’s investment in Candle Shack will fuel our next phase of growth, increasing our ability to support thousands of niche home fragrance brands across Europe. We are excited to be partnering with such an experienced investor and with Maven’s support, are aiming to cement our position as Europe’s leading home fragrance supplies business.”