LONDON, UK: Supreme Plc (AIM:SUP) announced the purchase of trade and assets of Cuts Ice Limited and Flavour Core Limited.

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.”