Supreme acquires vaping manufacturer Liberty Flights

Supreme, which owns vaping brands KiK and 88vape, has announced the acquisition of Liberty Flights, a leading UK vaping manufacturer best known for their Liberty Flights vaping brand and Dot Pro device for a total consideration of up to £14.75 million.

The transaction involves an initial consideration of £7.75 million plus deferred consideration of £2 million which is payable in 12 months, in addition to a performance related earn-out of up to £5 million. Under current performance expectations, this will be approximately £2 million, Supreme said in a regulatory filing.

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.

For the year ended 31 January 2021, Liberty Flights generated revenues of approximately £9 million and EBITDA of £1.5 million.

Supreme said the acquisition is firmly in line with its strategy to support a tobacco free UK by offering both credible and safer alternatives for nicotine consumption.

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

“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. We look forward to welcoming Liberty Flights into the Supreme group and updating shareholders on our progress over the course of the current financial year."

Liberty Flights will operate as a standalone entity for an initial 12-month period before being fully integrated into Supreme.

Supreme supplies products across five key categories - batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods – to over 10,000 retail outlets.