Supreme PLC (AIM:SUP) has confirmed the acquisition of Typhoo Tea, the British tea brand that entered administration last week.
Supreme, which is best known as a vape distributor, initially confirmed talks of a deal on Friday.
Under the deal, Supreme will pay a total cash consideration of £10.2 million to take Typhoo out of administration.
Sandy Chadha, chief executive of Supreme, stated: "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 benefiting from Supreme's significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.”
Supreme is under pressure to diversify its business lines amid harsher incoming regulations surrounding the sales and consumption of vaping products.
Earlier this year, the company established a soft drinks division.
“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,” said Chadha.