Vapes and batteries maker Supreme has bought collapsed tea firm Typhoo out of administration.
Typhoo Tea filed to appoint administrators last Wednesday, risking the future of the 121-year-old firm.
However, London-listed Supreme confirmed talks over a deal last week and said on Monday it has completed a rescue deal to buy the historic brand.
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
Supreme said it will pay a total of £10.2 million to buy Typhoo, in a deal which values the brand’s stock and trade debts at £7.5 million.
Typhoo generated revenues of around £20 million for the year to September 30, with a pre-tax loss of around £4.6 million.
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 ultimately appointed to oversee the administration process and strike a sale deal. It is understood the business has fewer than 100 employees.
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.
The move is part of a strategy by Supreme to expand its operations away from vaping, after buying soft drinks business Clearly Drinks earlier this year, before a planned Government crackdown on disposable vapes.
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.”