Supreme PLC said on Thursday it is in talks to buy Typhoo Tea Limited, after Typhoo was placed into administration.
Supreme is a Manchester, England-based manufacturer and distributor of fast-moving consumer products including batteries and vapes.
After press speculation, Supreme’s board confirmed it is ‘currently participating in a process’ around the potential acquisition of Typhoo Tea, the Bristol, England-based historic drinks business.
Supreme said discussions are ‘at an advanced stage’ but that there can be ‘no certainty’ that the potential acquisition will be completed.
Supreme said that any potential offer would be funded by its existing bank facilities.
Typhoo filed a notice to appoint administrators on Wednesday after 120 years, according to official filings. Insolvency specialists at Kroll Advisory Ltd have been appointed to oversee the administration process.
Typhoo’s latest company filings showed that it made a £38 million loss last year.
Supreme is reducing its focus on vaping ahead of forthcoming government restrictions on disposable vapes. On Tuesday, Supreme said it expects its annual results to be ahead of expectations, supplemented by its acquisition of Clearly Drinks Ltd, which it bought for £15.6 million in June.
Shares in Supreme spiked to make a 0.6% gain when the discussions were confirmed, before falling. Shares were down 3.2% to 168.50 pence in London on Thursday afternoon.
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