Typhoo Tea has been brought out of administration by vape supplier Supreme for £10.2m.
The London-listed Supreme said it had agreed a deal to rescue the “trade and selected assets” of the 120-year-old tea maker.
It comes after Typhoo last week appointed administrators to explore a sale of the embattled tea business.
The deal would “accelerate Supreme’s broader diversification strategy” and bring annualised non-vape sales to over £120m, around half of group revenues, Supreme said.
The supplier moved into soft drinks in June with the acquisition of Clearly Drinks, and also operates in batteries, lighting, sports nutrition and wellness, as well as branded distribution.
The purchase includes Typhoo Tea’s stock and trade debtors with a book value of £7.5m.
Under Supreme’s stewardship, Typhoo would continue to supply major grocery multiples and operate with an “asset-light, outsourced model”, the 88Vape maker 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,” said CEO Sandy Chadha.
“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,” Chadha added.
The deal comes at the end of a turbulent period for historic tea brand Typhoo, which has racked up losses of more than £120m since 2017/18.
The business, which had been owned by private equity firm Zetland Capital since 2021, saw revenues slide 25% to £25.3m in the year ended 30 September 2023 as it sought to slim down its business and exit unprofitable ventures and SKUs.
For the year ended 30 September 2024, Typhoo Tea generated unaudited revenue of approximately £20m, Supreme said.
Pre-tax losses raced to almost £40m last year after trespassers broke into one of its factories in Merseyside, but had fallen to just £4.6m this year, it claimed.
The company – founded by greengrocer John Sumner in 1903 – is understood to have fewer than 100 employees.
Typhoo Tea has been approached for comment.
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