Typhoo Tea is latest British name to be bought by private equity in wave of dealmaking by buy-out companies
Typhoo Tea is the latest British business to be bought by a private equity firm amid a wave of dealmaking by City buy-out companies.
Industry sources said London-based Zetland Capital, led by dealmaker Ahmed Hamdani, has secretly snapped up a majority shareholding in Typhoo Tea.
Zetland is taking control of Typhoo Tea from the Indian conglomerate Apeejay Surrendra Group and its lenders following a financial restructuring.
Bagged: Typhoo Tea was founded by John Sumner Junior in the early 1900s in Birmingham to sell in his pharmacy and grocery shops
Typhoo Tea was founded by John Sumner Junior in the early 1900s in Birmingham to sell in his pharmacy and grocery shops.
The tea grew in popularity to become one of Britain’s best known brands and the first to sell ready-packaged tea. Typhoo Tea was also one of the first tea makers to introduce green tea blends to the UK.
As a result, Typhoo Tea has been bought and sold by some of the country’s largest consumer companies, such as Schweppes and Premier Foods.
Premier Foods, which is currently listed on the London stock market, sold Typhoo Tea to Apeejay Surrendra Group in 2005 for £80million.
Under Apeejay Surrendra’s ownership Typhoo Tea has had a tough time. Company accounts show that in 2019 Typhoo Tea generated a pre-tax loss of £29.9 million from just over £60.8million of sales.
Sources said Abercross Holdings, which already owns part of Typhoo Tea, had increased its shareholding in the company as part of the deal with Zetland.