E-cigarette device and accessories firm Red Box Vape has inked a deal to buy Scottish group Vapour Lounge, continuing its acquisition spree.
Red Box Vape claims the addition of the Edinburgh-founded firm, which incorporates five retail outlets across Dundee, Dunfermline and the capital, will boost annual turnover by £750,000. Full financial details of the transaction have not been disclosed.
Vapour Lounge director Ross Anderson will remain within the business to “ensure a smooth transition of ownership and drive increased profitability”.
Red Box Vape, headquartered in Nottingham, has this year opened or acquired 24 stores across the UK as part of its strategy to launch “at least” 100 outlets by the end of 2020.
Accountancy firm Coates & Partners acted as lead adviser in the Vapour Lounge deal, with legal representation from London-based Setfords.
Mark Shaw, managing director of Red Box Vape, said: “I would first like to welcome the Vapour Lounge team led by Ross Anderson to support our mission of providing a welcoming retail outlet for smokers that wish to quit.
“Vapour Lounge is a successful business with a strong client base and operates in a number of locations where we don’t have any representation and so is a good fit.”
Anderson added: “I’m pleased to be in business with Red Box Vape with such a clear vision about high quality and standards. Customers will notice very little change initially, particularly as my existing team already share the same objective of providing high standards of service.
“This deal gives us an opportunity to be part of a fast-growing business standing for quality, value and advocating the adherence to the highest standards of corporate governance.”