REG - Supreme PLC - Acquisition of Cuts Ice/Flavour Core trade/assets

SupremeAnnouncement

09/08/2022 07:00

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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                                                           via Vigo Consulting

 Sandy Chadha, Chief Executive Officer

 Suzanne Smith, Chief Finance Officer

 Grant Thornton UK LLP (Nominated Adviser)                             +44 (0)20 7383 5100

 Samantha Harrison / Harrison Clarke / Daphne Zhang / Samuel Littler

 Berenberg (Broker)                                                    +44 (0)20 3207 7800

 Chris Bowman / Mark Whitmore / Mara Grasso

 Vigo Consulting (Financial Public Relations)                          +44 (0)20 7390 0230

 Jeremy Garcia / Kendall Hill

 supreme@vigoconsulting.com

 

 

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 (http://www.investors.supreme.co.uk)

 

 

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