Consumer goods manufacturer Supreme set for EU expansion with Dublin deal
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Consumer goods manufacturer Supreme is expanding its footprint in Ireland following the acquisition of a Dublin based distributor of batteries and lighting products.
Supreme will pay Vendek up to €1.82m (£1.5m) for the deal.
Vendek operates exclusively within Ireland, distributing battery and lighting products under the Osram, Panasonic and Duracell brands and servicing some of the country’s leading retailers across DIY, hardware, convenience, and petrol stations.
The business was founded in 1996 and is profitable, cash generative and has reported consistent growth in recent years.
For the years ended 31 December 2019 and 31 December 2020, Vendek generated revenues of €4.7m and €5.6m and adjusted EBITDA of €500,000 and €700,000, respectively.
As at 31 December 2020, Vendek had net assets of €2.5m.
A certain amount of the growth achieved through 2020 can be attributed to increased demand for Vendek’s products during COVID-related lockdowns.
The group said the acquisition will create an opportunity to establish a European export hub specifically targeting countries within the EU whilst remaining competitive.
Sandy Chadha, CEO of Supreme, said: “We are delighted to be announcing what we believe to be a strategic acquisition in Vendek.
“This is our first transaction since our admission to trading on AIM, and not only expands our footprint in Ireland but provides an excellent platform from which to further penetrate the European markets.
“I have personally known this business for a number of years and firmly believe the combination of our two Ireland operations will significantly accelerate our growth aspirations and foster potentially stronger levels of cross-sell opportunities across our categories.
“We look forward to welcoming Vendek into the Supreme group.”