REG - Supreme PLC - Disposal of the IP of T-Juice

SupremeAnnouncement

14/03/2023 14:30

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RNS Number : 9537S  Supreme PLC  14 March 2023

14 March 2023

Supreme plc

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

 

Disposal of the IP of T-Juice

 

-    €4.5 million upfront payment for the IP of T-Juice brand and ongoing
consultancy services provides additional financing for the Group;

-    New strategic partnership for exclusive manufacturing rights to
T-Juice brand;

-    A minimum of €15 million of revenue over five years under
partnership, with adjusted earnings profile of the Group largely unchanged
following these arrangements.

 

Supreme (AIM:SUP), a leading manufacturer, supplier, and brand owner of
fast-moving consumer products, is pleased to announce it has entered into an
agreement for the disposal of the intellectual property ("IP") of T-Juice
(including the Red Astaire brand), to an associated company of La Vape
Professional Distribution ("LVP"), one of France's largest wholesalers of
electronic cigarettes and e-liquids with €4.5 million payable on completion.

 

Supreme and LVP have entered into a new strategic partnership under which
Supreme retains the exclusive manufacturing rights to T-Juice with minimum
€15 million of revenue over five years for Supreme (together "the
Agreements"). Consequently, the adjusted earnings profile is largely unchanged
following the Agreements. The brand was originally acquired as part of the
Cuts Ice asset deal which completed in August 2022 where the total value of
the intangible assets acquired was £1.4 million.

 

Strategic Rationale

 

·    The Agreements enable Supreme to focus on its core manufacturing
expertise and margin expansion

·    De-risks both European distribution and expansion, while simplifying
Supreme's costs to serve to one customer, LVP

·    Under the Agreements, Supreme retains the flavour development and
flavour manufacturing responsibility, ensuring it continues to generate supply
chain synergies as originally outlined

·    A strategic partnership with LVP provides future cross-sell
opportunities for the wider Supreme portfolio

 

Sandy Chadha, Chief Executive Officer of Supreme, commented:

 

"We are delighted to be entering into a long-term partnership with LVP, who
are ideally placed to fully capitalise on the strength of the brand across
Europe given their extensive and well-established distribution. These
agreements will enable Supreme to do what it does best - to further leverage
our manufacturing footprint and maximise our margin potential across our
product mix in the near term. Not only does this deliver a significant return
on our initial investment, but we have secured a highly lucrative five-year
manufacturing agreement, which ensures Supreme remains well positioned to
fully capitalise with LVP on their established European market presence and
sales footprint."

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

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 / 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 (mailto: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, Tesco, Sainsburys, Morrisons, Amazon, The Range,
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, Black & Decker 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 via its principal brands
Sci-MX and Battle Bites.

 

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

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