KBS POWERS EFFIPAP SALE TO FUEL EXPRESS

Effipap Ltd has been sold to solid fuel and gas products supplier Fuel Express in a deal overseen by Daniel DiMarco, KBS Corporate Deal Executive.

Established in 2016, Effipap initially traded as a distribution business, delivering leaflets and telephone directories throughout the UK.

In 2020, the owners sought to expand the Wiltshire-based company by directly marketing, retailing and distributing solid fuel materials under a variety of brand names, with a focus on wood pellets and kiln-dried firewood.

Fuel Express, based in Wakefield, sells its own branded products including lumpwood charcoal, heat logs, barbecue briquettes, salt for paths and driveways and screenwash, as well as Calor gas canisters.

Kirsty Poynton, KBS Senior Document Writer, underscored the most appealing aspects of Effipap when preparing the marketing portfolio for the opportunity.

“Effipap’s brands and established, nationwide customer network provided a strong focal point for the documentation,” said Kirsty.

“With the company having diversified into the marketing, retailing and distribution of solid fuel materials in 2020, I was able to build upon its considerable progression by highlighting a wealth of development opportunities which utilised the vast asset register and industry connections already in place.”

A synergistic buyer appeared a natural fit for Effipap and that is exactly what came to pass, with Fuel Express offering a complementary service.

“The buyer has purchased the company for his son-in-law, who was already in the process of running a small fuel business,” explained Daniel DiMarco.

“This acquisition will enable them to grow their client base and progress their business forwards through acquisition, rather than having to invest into their existing company and grow organically over the next few years.”

Shazaman Ali, KBS Corporate Senior Research Analyst who managed the sale’s outreach process, added: “KBS has a proven track record of successful deals with similar operating businesses, and this transaction stands out as one of the quickest handovers to date.

“Effipap instantly piqued the interest of private equity firms and trade buyers when it entered the market.

“Given recent government changes in the UK and Europe, the demand for Effipap products is poised to grow, making it a sustainable, long-term business with a solid foundation.”