Supreme plc, the Manchester fast-moving consumer products supplier, said it has entered into an agreement for the disposal of the intellectual property (IP) of T-Juice, including the Red Astaire brand, to an associated company of La Vape Professional Distribution (LVP) for €4.5 million.

Supreme said LVP is one of France’s largest wholesalers of electronic cigarettes and e-liquids.

“Supreme and LVP have entered into a new strategic partnership under which Supreme retains the exclusive manufacturing rights to T-Juice with minimum €15 million of revenue over five years for Supreme,” said the Manchester firm.

“Consequently, the adjusted earnings profile is largely unchanged following the agreements. The brand was originally acquired as part of the Cuts Ice asset deal which completed in August 2022 where the total value of the intangible assets acquired was £1.4 million.”

Supreme CEO Sandy Chadha said: “We are delighted to be entering into a long-term partnership with LVP, who are ideally placed to fully capitalise on the strength of the brand across Europe given their extensive and well-established distribution.

“These agreements will enable Supreme to do what it does best – to further leverage our manufacturing footprint and maximise our margin potential across our product mix in the near term.

“Not only does this deliver a significant return on our initial investment, but we have secured a highly lucrative five-year manufacturing agreement, which ensures Supreme remains well positioned to fully capitalise with LVP on their established European market presence and sales footprint.”