The vapes and batteries maker Supreme has bought the collapsed 121-year-old tea company Typhoo out of administration in a £10m rescue deal.
Typhoo Tea filed to appoint administrators last Wednesday, risking the future of the historic brand.
However, the London-listed Supreme confirmed talks over a deal last week and said on Monday it had completed a rescue deal to buy the brand.
Supreme said it will pay a total of £10.2m to buy Typhoo, in a deal that values the brand’s stock and trade debts at £7.5m.
Typhoo generated revenues of about £20m for the year to 30 September, with a pre-tax loss of about £4.6m.
The new owner said it plans to run Typhoo on a “capital-light, outsourced manufacturing model” in a bid to improve profits.
The collapse followed several years of declining sales, mounting debts and even a break-in at Typhoo’s Wirral factory last year.
Insolvency specialists at Kroll were appointed to oversee the administration process and strike a sale deal. It is understood the business has fewer than 100 employees.
The move is part of a strategy by Supreme to expand its operations away from vaping, after buying the soft drinks business Clearly Drinks earlier this year, before a planned government crackdown on disposable vapes.
after newsletter promotion
The Supreme chief executive, Sandy Chadha, said: “The acquisition of Typhoo Tea marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family.
“I believe Typhoo Tea will thrive under our ownership, further benefiting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.”
Source: theguardian.com
