Supreme PLC (AIM: SUP) has announced the acquisition of Typhoo Tea, the iconic British tea brand that entered administration last week.
Best known as a leading vape distributor, Supreme initially disclosed discussions regarding the deal on Friday.
As part of the agreement, Supreme will pay £10.2 million in cash to rescue Typhoo from administration.
While Supreme is primarily recognized as a vape distributor, analysts at Shore Capital Markets believe the company exemplifies “admirable entrepreneurship, a robust balance sheet, and a proven track record of earnings per share (EPS) growth, which is expected to be further bolstered by this acquisition.”
Analysts noted, “Supreme’s expertise in proprietary brands and UK retail underpins an EPS-accretive acquisition that broadens its product range, aligning with its strategy of diversified growth amid shifts in the vape market.”
Susannah Streeter, head of money and markets at Hargreaves Lansdown, remarked, “The deal with Supreme had been brewing for some time, and there will be relief that the finer details have been poured over and the acquisition finalized.”
She added, “Supreme has clearly secured a bargain with Typhoo, acquiring the brand out of administration. With a loyal customer base to build upon, the company will likely identify new opportunities, leveraging tea’s wellness appeal to complement its supplements and multivitamin division.”
