Supreme said it will pay 10.2 million pounds ($13 million) to buy the British tea brand Typhoo Tea.
The consumer goods distributor that is listed in London said on Monday that the deal should increase adjusted earnings and that the merger of the business will go smoothly, with no changes to current operations or levels of customer service.
Supreme said that the acquisition will speed up its plan to sell more products that aren’t vapes, which will bring its annualised sales of non-vapes to over 120 million pounds, or about half of its group revenue.
“The acquisition will immediately broaden Supreme’s U.K. retail network, adding more high street names including Holland & Barrett, which could generate sales opportunities across multiple Supreme categories and product areas,” it said.
Supreme said that Typhoo Tea had an unaudited revenue of about 20 million pounds and a pre-tax loss of about 4.6 million pounds for the fiscal year that finished on September 30.
Supreme said last week that it was talking with Typhoo Tea.
