Supreme buys white label soft drinks business off NorthEdge for £15m
Consumer goods distributor Supreme has bought Clearly Drinks from private equity investor NorthEdge for £15m.
The manufacturer of brands including Perfectly Clear, Northumbria Spring and Revolution Waves currently services up to 70 retail customers including Waitrose, Aldi, Tesco, Sainsbury’s, and Farm Foods with own label brands.
NorthEdge invested in Clearly Drinks in 2017, backing the management team in a buyout.
AIM-listed Supreme has paid five times EBITDA for the Sunderland-based business which is also a contract manufacturer for a number of the world’s largest soft drinks companies.
It told shareholders in a stock market notice this morning that the deal was completed on a cash-free, debt-free basis and would bring revenue from “non-vape” products to over £100 million (£250 million including the Group’s Vaping division).
The company also said integration of distribution platforms, manufacturing synergies, customer channels and product development would add value to the business post-acquisition.
Sandy Chadha, Chief Executive Officer of Supreme, said the deal delivers a significant component of a 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,” he said.
“We look forward to welcoming Clearly into the Supreme family and updating shareholders on our progress over the course of the current financial year.”
Supreme has recently established a Sports Nutrition & Wellness division to produce wellness and energy drinks.
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.
Clearly Drinks 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.
