Typhoo Tea has been rescued from administration by vapes and batteries maker Supreme.
Britain’s oldest tea company filed to appoint administrators last Wednesday, risking the future of the 121-year-old business.
The tea firm’s collapse followed several years of declining sales, mounting debts and even a break-in at its Wirral factory last year.Â
However, London-listed Supreme PLC confirmed talks over a deal last week and said on Monday it has completed a rescue deal to buy the historic brand.
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.
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.
The new owner said it plans to run Typhoo on a ‘capital-light, outsourced manufacturing model’ in a bid to improve profits.
Typhoo Tea has been rescued from administration by vapes and batteries maker Supreme
Boxes of Typhoo Tea with a promotion are displayed for sale on a supermarket shelf
The move is part of a strategy by Supreme to expand its operations away from vaping, after buying soft drinks business Clearly Drinks in a £15m deal earlier this year.
This came before a Government crackdown on disposable vapes.
Sandy Chadha, chief executive of Supreme, 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, alongside avenues into credible UK retailers that Supreme has been looking to partner with.’
Established in 1903, Typhoo Tea was the first pre-packaged tea brand in the UK.Â