It was announced on 28 November that Typhoo had appointed administrators as a result of mounting losses in recent years, with Supreme moving quickly to secure a deal.
In the 12 months up to September 2024, Typhoo generated revenues of approximately £20m and a loss before tax of approximately £4.6m, following a £38m loss the previous year.
Supreme, which supplies retailers with products such as Duracell batteries and Elf Bar vapes, confirmed last week that it was in talks with advisory firm Kroll about a potential acquisition, and an agreement was reached on 2 December.
Worth £10.2m, the deal includes Typhoo’s stock and trade debtors valued at £7.5m.
Typhoo was previously owned by London-based private equity firm Zetland Capital, which acquired the tea producer from Apeejay Surrendra Group in 2021.
Historic brand
Established in 1903, Typhoo was the UK’s first pre-packaged tea brand and has since expanded its product offering to include a wide variety of teas and coffees.
The brand supplies all the major UK supermarkets and discounters, international customers across North America and Asia, and the Ministry of Defence and NHS.
Under Supreme’s ownership, Typhoo will operate on a capital light, outsourced manufacturing model, which the board believes can generate a gross profit margin of around 30%.
Commenting the deal, Supreme CEO Sandy Chadha said that the Typhoo brand will fit nicely into the firm’s newly established 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,” added Chadha.
“I believe Typhoo Tea will thrive under our ownership, further benefitting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.”
