Supreme PLC (AIM:SUP) said it bought UK vaping manufacturer Liberty Flights Holdings Limited for an initial £7.75mln as part of its strategy to promote a tobacco-free UK.
The manufacturing and retail group said the deal is expected to be immediately earnings enhancing.
Liberty Flights will operate as a standalone entity for an initial 12-month period before being fully integrated into Supreme.
Liberty Flights, which specialises in e-liquids and high-quality vaping devices, as well as distributing third-party e-liquid brands, generated revenues of around £9mln and EBITDA of £1.5mln for the year ended January 31, 2021.
The deal consists of a £7.75mln cash payment on completion, a £2mln deferred payment (payable in 12 months) and an earn-out to be paid based on performance over a one-year period of up to £5mln. Management currently estimates this will be about £2mln.