Shares in Supreme PLC (AIM:SUP) rose after it announced it was acquiring Clearly Drinks for £15 million in a deal that adds 'diversity' to the former's earnings.
Clearly, founded in 1885, manufactures and bottles spring water and soft drinks in cans, glass, and plastic bottles.
It supplies major UK retailers such as Waitrose, Aldi, Tesco, Sainsbury's, and Farm Foods. It also produces private-label beverages and acts as a contract manufacturer for large soft drinks companies.
Clearly owns brands such as Perfectly Clear, Northumbria Spring, and Revolution Waves, offering a range of products including spring water, energy drinks, and flavoured waters.
The business employs around 100 staff and operates a 150,000 sq. ft. facility with three natural spring water boreholes, capable of accessing 300 million litres of fresh water. The site features a new automated can line with a capacity of 350 million cans per year.
For the year ending December 2023, Clearly reported revenue of £22.4 million and an adjusted earnings (EBITDA) of £3 million. Supreme expects this acquisition to broaden its product range and enhance distribution, sales, and product innovation opportunities.
Shore Capital, Supreme's broker, said: "We see a group with an attractive and increasingly diverse mix of products and customers, underpinned by strong and sustained cash flows and balance sheet."
The shares opened 6.7p higher at 144.25p.