LONDON: Supreme Plc (AIM: SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer goods, announced the acquisition of Acorn Topco Limited, the parent company of Clearly Drinks Limited, a long-established and well-known UK manufacturer of specialised canned and bottled-at-source spring water and soft drinks, for a total net cash consideration of £15 million.

Established in 1885, Clearly Drinks is a brand owner and manufacturer of soft drinks and bottled-at-source spring water in cans, glass and polyethylene terephthalate (“PET”) (plastic) bottles, and currently services c.70 customers nationwide including major UK retailers Waitrose, Aldi, Tesco, Sainsbury’s, and Farm Foods.

Alongside manufacturing its own brands and providing private and own label beverages for supermarkets and discounters, Clearly Drinks is a contract manufacturer for a number of the world’s largest soft drinks companies.

Clearly Drinks is the owner of Perfectly Clear, Northumbria Spring and Revolution Waves, offering a diverse range of products across its beverage brands portfolio including spring water (still and sparkling), energy drinks, isotonic vitamin drinks, flavoured spring water, juices, coffee-based beverages, and mixers and tonics.

The Business employs around 100 members of staff and operates across a 150,000 sq. ft. freehold site which includes three onsite natural spring water boreholes capable of accessing up to 300 million litres of fresh spring water. The facility is fully automated, having received a multimillion-pound investment, and contains a new fully automated can line with the capacity to produce 350 million canned drinks per year. In addition to cans, Clearly Drinks has the manufacturing capabilities to package products in glass or PET bottles, further accommodating both medium and large-sized retailers.

For the year ended 31 December 2023, Clearly reported (unaudited) revenue of £22.4 million and Adjusted EBITDA of £3.0 million, with further growth anticipated for the year ended 31 December 2024. 

The acquisition broadens Supreme’s product range, bringing non-vape annualised sales to over £100 million (£250 million including the Group’s Vaping division).

Clearly’s operational footprint can benefit from Supreme’s vertically integrated distribution platform with the potential for the enlarged group to further develop sales, marketing and product innovation opportunities.

 The acquisition will be immediately earnings enhancing for Supreme. 

Supreme has acquired 100% of the share capital of Acorn Topco Limited and its associated subsidiaries including Clearly Drinks Limited on a cash-free, debt-free basis from NorthEdge Capital LLP for a total net cash consideration of £15 million (as adjusted for completion mechanics), which will be funded from the Company’s free cash.

Clearly Drinks is based in Sunderland in the North-East of England, and Supreme intends for it to continue to operate from this site, with access to the onsite boreholes, for the foreseeable future, independent of the other manufacturing operations within the Supreme group.  

Sandy Chadha, Chief Executive Officer of Supreme, commented: “We are delighted to be acquiring Clearly, a high-quality manufacturer and brand owner of soft drinks, which I believe delivers a significant component of our broader diversification strategy. Our enlarged business is not only gaining a strong additional pillar, which fully aligns with our Vaping, Lighting, Batteries and Sports Nutrition & Wellness categories, but also a significant opportunity to develop and capitalise on further cross and upsell opportunities which our trusted reputation across the UK retail space facilitates.

We look forward to welcoming Clearly into the Supreme family and updating shareholders on our progress over the course of the current financial year.”