Business
Acquisition of Liberty Flights Holdings Limited
Acquisition of Liberty Flights Holdings Limited.
About this update from Supreme Plc
[{"type":"text","content":"\n \n \n 13\n June 2022\n \n \n \n \n \n \n \n \n Supreme plc\n \n \n \n \n (\"Supreme,\"\n \n the \"Company\" or the \"Group\")\n \n \n \n \n \n \n \n \n Acquisition of Liberty Flights for an initial consideration of £7.75 million\n \n \n \n \n \n \n \n \n - Strategic acquisition of leading vaping manufacturer accelerates product development and expands UK customer footprint\n \n \n - Transaction will deliver earnings growth alongside synergy benefits and cost savings\n \n \n \n \n \n \n \n Supreme (AIM:SUP), a leading manufacturer, supplier, and brand owner of fast-moving consumer products, announces the acquisition of Liberty Flights Holdings Limited (\"Liberty Flights\"), a leading UK vaping manufacturer best known for their Liberty Flights vaping brand and the market-leading Dot Pro device, for an initial consideration of £7.75 million plus deferred consideration of £2 million, in addition to a performance related earn-out (the \"Acquisition\").\n \n \n \n \n \n Founded in 2010, Liberty Flights specialises in premium e-liquid and high-quality vaping devices, alongside distributing a large catalogue of global third-party e-liquid brands. The brand is sold largely through convenience retailers, either directly or via wholesalers, as well as through an expanding direct to consumer online footprint.\n \n \n \n \n \n The Acquisition is firmly in line with the Company's strategy to support a tobacco free UK by offering both credible and safer alternatives for nicotine consumption.\n \n \n \n \n \n For the year ended 31 January 2021, Liberty Flights generated revenues of approximately £9 million and EBITDA of £1.5 million.\n \n \n \n \n \n The Acquisition is expected to be immediately earnings enhancing for the Group, with Liberty Flights expected to operate as a standalone entity for an initial 12-month period before being fully integrated into Supreme.\n \n \n \n \n \n \n All financials for Liberty Flights are unaudited.\n \n \n \n \n \n \n \n Strategic rationale\n \n \n \n \n \n \n \n \n ·\n Immediately earnings enhancing with further manufacturing and sourcing synergies expected post-integration;\n \n \n \n \n \n ·\n Significant product and customer overlap with Supreme across the Group's vaping category with potential to enhance margins across...