Deborah Dempsey, owner of Dempsey Designs, said: "Minicraft has a terrific heritage and some great classic designs, we know the soft toy kit area is really growing and we look forward to developing the brand in the future."
There are more than 50 soft toy kits in the range. With pre-cut, ready-to-stitch fabric pieces kids can make their own plush toys. Mini Kits are sold at around £4.99 with the Cuddly Soft Toy Kits at around £12.99.
Minicraft kits will remain available to the independent retail trade through Groves and through Dempsey Designs' usual distribution channel.
Dempsey will shift Minicraft manufacturing to its UK production unit in Leicester.