Acquisition of Cuts Ice/Flavour Core trade/assets

RNS Number : 3288V

Supreme PLC

09 August 2022

 

9 August 2022

Supreme plc

("Supreme," the "Company" or the "Group")

Acquisition of trade and assets of Cuts Ice Limited and Flavour Core Limited

Acquisition of premium developer and manufacturer of branded and white label e-liquids, expanding Supreme's European sales footprint

Supreme (AIM:SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer products, announces the purchase of trade and assets of Cuts Ice Limited ("Cuts Ice") and Flavour Core Limited ("Flavour Core") (the "Acquisition"). Cuts Ice is an independent vaping manufacturer with major own brands as well as OEM manufacturing contracts, and Flavour Core is a flavour development and regulatory compliance business in e-liquids.

Cuts Ice has also developed a leading vape brand 'T Juice', which has successfully developed a single flavour 'Red Astaire', which has achieved significant brand recognition in key European markets.

The Acquisition, whilst delivering a number of integration synergies, will see Supreme acquire a renowned vaping brand alongside absorbing vape flavouring and mixing expertise. In addition, Cuts Ice has established a growing European sales footprint, with the majority of sales being to continental Europe, including France, Germany, Italy, Spain, Belgium, which will add geographic diversity to Supreme's more UK-centric vaping division.

The Acquisition is firmly in line with the Company's strategy to support a tobacco free society by offering both credible and safer alternatives for nicotine consumption.

The undisclosed cash consideration will be satisfied from existing resources, and the Acquisition is expected to be immediately earnings enhancing at an Adjusted EBITDA level for the Group. Cuts Ice and Flavour Core are expected to be fully integrated into Supreme's wider Vaping division.

Sandy Chadha, Chief Executive Officer of Supreme, commented:

"We are delighted to be acquiring assets from Cuts Ice and Flavour Core, a highly innovative and hugely popular brand both in the UK and across Europe.

We continue to see significant growth from within our vaping activities and see this transaction as an excellent example of how we can continue to add both scale and expertise into the Group."

Enquiries:

Supreme plc Sandy Chadha, Chief Executive Officer Suzanne Smith, Chief Finance Officer	via Vigo Consulting
Grant Thornton UK LLP (Nominated Adviser) Samantha Harrison / Harrison Clarke / Daphne Zhang / Samuel Littler	[phone]
Berenberg (B roker ) Chris Bowman / Mark Whitmore / Mara Grasso	[phone]
Vigo Consulting (Financial Public Relations) Jeremy Garcia / Kendall Hill [e-mail]	[phone]

About Supreme

Supreme supplies products across five key categories; batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods. The Company's capabilities span from product development and manufacturing through to its extensive retail distribution network and direct to consumer capabilities. This vertically integrated platform provides an excellent route to market for well-known brands and products.

The Group has over 3,300 active business accounts with retail customers who manage over 10,000 branded retail outlets. Customers include B&M, Home Bargains, Poundland, The Range, Sports Direct, Londis, SPAR, Costcutter, Asda, Halfords, Iceland and HM Prison & Probation Service.  

In addition to distributing globally-recognised brands such as Duracell, Energizer and Panasonic, and supplying lighting products exclusively under the Energizer, Eveready and JCB licences across 45 countries, Supreme has also developed brands in-house, most notably 88Vape and has a growing footprint in Sports Nutrition and Wellness.

www.investors.supreme.co.uk

 

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