Typhoo Tea has been rescued out of administration by a vapes, batteries and vitamins seller for more than £10m.
The trade and selected assets of the Bristol-based company have been acquired by Manchester-based Supreme, which is listed on the London Stock Exchange’s AIM, for £10.2m.
In a statement, Supreme said the deal includes Typhoo Tea’s stock and trade debtors with a book value of £7.5m and that it expects the integration of the business to “proceed without disruption to existing operations or customer service levels“.
The deal comes after Typhoo Tea, which was founded in 1903, collapsed into administration last month in move which put more than 100 jobs at risk.
In its statement, the firm’s new owner did not specify how many jobs would be saved as part of the rescue deal.
For the year to 30 September, 2024, Typhoo Tea generated an unaudited revenue of approximately £20m and a pre-tax loss of around £4.6m.
In the year ending September 2023, the company’s revenue stood at £25.3m and it made a pre-tax loss of £37.9m.
Its new owner said that it anticipates that the brand will “operate on a capital light, outsourced manufacturing model, which the board believes can generate a gross profit margin of around 30 per cent, with a much reduced overhead base“.
In its half-year results, Supreme posted a revenue of £113m, up eight per cent, and a pre-tax profit of £12.9m, a five per cent rise.
Typhoo Tea was taken over by Zetland Capital Partners in July 2021.
‘Typhoo Tea will thrive under our ownership’
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 benefitting 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.
“We look forward to welcoming Typhoo Tea into the Supreme family and updating shareholders on our progress over the course of the current financial year.”