Soft drinks manufacturer acquired by Supreme at 5x EBITDA
Mon, 24 Jun 2024 | BUSINESS SALE
Clearly Drinks, a Sunderland-based manufacturer of canned and bottled spring water and soft drinks, has been acquired by Supreme plc in a deal worth £15 million. The acquisition also provides an exit for NorthEdge Capital.
The deal represents a 5x multiple of Clearly Drinks’ adjusted EBITDA of £3 million in the year ending December 31 2023, generated on revenue of £22.4 million. The company is anticipating further growth in the year to the end of 2024.
Clearly Drinks supplies around 70 customers across the UK, including major retailers such as Aldi, Waitrose, Tesco and Sainsbury’s. The company provides a wide range of products, including still and sparkling spring water, vitamin drinks, energy drinks, flavoured water, juices and mixers and tonics.
Its portfolio of brands includes Northumbria Spring, Perfectly Clear and Revolution Waves. In addition to its own brands, the company also provides private and own-label drinks for supermarkets and discounters, as well as serving as a contract manufacturer for major global soft drinks firms.
It operates from a 150,000 sq ft freehold site with three onsite natural spring water boreholes, capable of accessing up to 300 million litres of fresh water each year.
Supreme Plc has acquired Clearly Drinks parent company Acorn Topco Limited from NorthEdge Capital on a cash-free, debt-free basis. Following the acquisition, Clearly Drinks will continue to operate from its existing site in Sunderland, independent of the group’s other manufacturing operations.
Supreme said that the acquisition of Clearly Drinks would broaden its product range and bring its non-vape annualised sales past the £100 million mark.
Supreme plc Chief Executive Sandy Chadha commented: "Our enlarged business is gaining not only a strong additional pillar that aligns with our Vaping, Lighting, Batteries, and Sports Nutrition & Wellness categories but also a significant opportunity to develop and capitalise on the further cross and upsell opportunities facilitated by our trusted reputation across the UK retail space.”
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