Liberty Flights

Wholesale distributor Supreme has acquired vaping manufacturer Liberty Flights for £7.75m, plus a deferred consideration of £2m.

The deal will also include an earnout based on performance within a one-year period.

The earnout is estimated to be worth an additional £2m, taking the overall cost of the acquisition to around £11.75m.

Liberty Flights was founded in 2010 and specialises in premium e-liquid and vaping devices. It also supplies a wider range of third-party e-liquids to consumers.

In the year to January, the company generated around £9m in revenue, with earnings before interest, tax, depreciation and amortisation of £1.5m.

Liberty Flights will operate as a standalone entity for 12 months before being fully integrated into Supreme.

The acquisition is expected to enhance Supreme revenues immediately, expanding the business’ product range and enhancing margins.

Supreme said that the acquisition signalled its intent to support a tobacco-free UK by supplying safer alternatives to traditional smoking.

It comes after the Khan review recommended the gradual phasing out of tobacco in the UK by increasing the age at which consumers can purchase cigarettes by one year every year.

“We are delighted to be acquiring Liberty Flights, a business I have personally known since its inception and a brand I have long admired,” said Supreme CEO Sandy Chadha.

“The combination of Liberty Flights and Supreme’s existing vape offerings couldn’t be more aligned and is highly complementary across our respective manufacturing, product, and customer profiles.

“In addition, the acquisition further builds on our significant market reach in the UK, accelerating our product presence in the fast-growing pod system market, a sizeable growth opportunity for Supreme.”