Typhoo Tea has been saved from administration by a seller of vapes, batteries and vitamins in a deal worth over £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.
Supreme stated that the deal includes Typhoo Tea’s stock and trade debtors with a book value of £7.5m and expects the integration of the business to “proceed without disruption to existing operations or customer service levels”. The rescue comes after Typhoo Tea, established in 1903, fell into administration last month, putting over 100 jobs at risk.
The new owner did not specify how many jobs would be preserved as part of the rescue deal. For the year ending 30 September, 2024, Typhoo Tea reported 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 was £25.3m and it made a pre-tax loss of £37.9m. The new owner 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 previously taken over by Zetland Capital Partners in July 2021, as reported by City AM.
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.”
He further added: “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.”
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