A vape company has bought Typhoo Tea in a multimillion pound deal after the 120-year-old British based firm was plunged into administration.
Supreme, which is also a drinks manufacturer, snapped up the company in a deal worth £10.2million following several years of declining sales and mounting debts for the tea giant.
Supreme does not expect there to be any disruption to supply of Typhoo during the acquisition process. The historic tea business also suffered from a break-in.
Last year, thieves targeted its factory in Wirral, Merseyside, causing “extensive damage” and making the site “inaccessible”, The Mirror reports.
Its latest company filings showed a £38million loss last year, while sales fell by a quarter to £25.3million. Typhoo was founded in 1903 and is understood to have fewer than 100 employees. It has appointed Kroll to handle its administration process.
Its new owner Supreme is looking to expand its business away from vaping, ahead of a Government crackdown on disposable vapes.
The firm also purchased soft drinks business Clearly Drinks earlier this year. Supreme confirmed it was in discussions to buy Typhoo last week and confirmed today it had completed a rescue deal.
Supreme said in a statement: “Supreme is pleased to announce the acquisition of the trade and selected assets of Typhoo Tea Limited for a total cash consideration of £10.2million out of administration.
“The deal includes Typhoo Tea’s stock and trade debtors with a book value of £7.5million.” Sandy Chadha, chief executive of Supreme, spoke about the move.
He 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.
“Having established our soft drinks division earlier in the year, we believe the addition of Typhoo Tea and its highly complementary blend of great value and premium tea brands, creates tangible cross sell and product innovation opportunities in the near-term.”
Sandy, who joined Supreme from school and has been involved in the management of the business since 1988 said the move gives “avenues into credible UK retailers that Supreme has been looking to partner with.”
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