DTM Legal client, Typhoo Tea, has secured significant investment after Zetland Capital, a London-based private equity firm, acquired a majority shareholding in the business and existing backer Abercross expanded its stake.
The company, whose brands include Glengettie, Fresh Brew, Heath & Heather, Lift, London Fruit & Herb, Melrose and Ridgways, was founded by John Sumner Junior in the early 1900s in Birmingham and grew in popularity to become one of Britain’s best-known brands and the first to sell ready-packaged tea.
According to Chief Executive, Des Kingsley, the deal marks a new era for the business.
“Typhoo Tea has secured major investment that will enable us to reassert our brands both in the UK and internationally to deliver profitable growth, ” he said. “After a challenging two years, we are pleased that we can now continue with our programme of rebuilding one of the nation’s favourite tea brands.”
The investment will allow Typhoo to invest in its factory in the Wirral and implement plans that will result in the creation of new jobs across all areas of the business, ensuring a bright future for the business.
Ahmed Hamdani, founder and chief investment officer at Zetland Capital, added: “Typhoo Tea has a strong heritage and brand, having made tea in the UK for nearly 120 years.
“We are delighted to support Des and the rest of the team. Our partnership will enable investment at an important time for the company and we are confident that Typhoo can regain its reputation as one of Britain’s most loved brands and drive innovation in the sector.”
Ed Barnes, Head of DTM Legal’s Corporate and Commercial team, who worked on the deal with fellow partner, Richard Thomas, said. “We have worked with Typhoo for some years now and were delighted to play our part in securing this investment which will no doubt see Typhoo go from strength to strength.”
Of DTM Legal’s involvement, Des Kingsley added, “It is difficult to put into words how appreciative I and the rest of the management team are for the valued contribution made by DTM Legal and that, despite the many challenges, we were able with their help to conclude this important and complex transaction.”