NEWS RELEASE
ISSUED BY: RED BOX VAPE LTD
DATE: JUNE 6, 2019 (FINAL)
Red Box Vape lands Barracuda in major store acquisition deal
Britain's fastest-growing retail vape brand has today finalised a deal to buy 11 Barracuda vape stores as part of a bullish acquisition programme.
Nottingham-based Red Box Vape secured the deal - for an undisclosed fee - with Barracuda's owner Fast Fuse Ltd, which is headquartered in Cardiff. Nine of the acquired stores are in the South Wales area, with additional stores in Bristol and Dumfries, Scotland.
The move is part of a plan to open at least 100 Red Box Vape stores by the end of 2020. This will be achieved through the rapid acquisition of existing vape businesses as well as the opening of brand new store premises and franchise operations.
Mark Shaw, managing director of Red Box Vape, said: "It's fantastic to have landed such a well-established chain as Barracuda. It represents the beginning of a significant sea-change in the retail vape market. We are aiming very high indeed.
"Red Box Vape is making no secret of the fact that it's in acquisition mode. We absolutely intend to reach 100 stores as quickly as possible. The Barracuda deal with Fast Fuse is just the first of many."
Although Red Box has purchased 100 per cent of the Fast Fuse empire, existing Fast Fuse director Lee Woolls is expected to remain within the business structure to ensure a smooth transition of ownership.
Mr Shaw said: "Customers will notice very little change initially, particularly as Lee and the Barracuda team believe in the same high standards of service that we do at Red Box Vape. It will effectively be business as usual."
Mr Woolls said: "Selling a successful business was not an easy decision, but I'm delighted we've found a buyer in Red Box Vape with such a clear vision about high quality and standards. We know our customers and staff will be left in very good hands."
While the purchase fee remains undisclosed, Mr Shaw indicated that the 11 Barracuda stores would add around £1.5m to Red Box Vape's annual turnover.
Red Box Vape has also recently finalised a joint venture deal to open a Red Box Vape store in Oakham, Leicestershire. And negotiations are underway with three other UK vape businesses to acquire another 30 stores from the Midlands to Scotland.
The company opened its first flagship store in Nottingham last July.
Accountancy firm Coates & Partners, of Ashbourne, Derbyshire, acted as lead adviser in the Barracuda acquisition, with legal representation from London-based solicitors Child & Child.
ENDS
2 x images:(Left-right) Mark Shaw, managing director of Red Box Vape, and Lee Woolls, director of Fast Fuse, at one of the Cardiff Barracuda stores.
1. Mark Shaw & Lee Woolls (l-r)
2. Mark Shaw & Lee Woolls (l-r)
NOTES TO EDITORS:
Red Box Vape Ltdis the retail arm of parent companyRed Box Liquids Ltd, which operates from its head office in Nottingham. The group also includesRed Liquids Ltd, the own-brand e-liquids manufacturing and distribution arm of the group. Red Box Vape is supported by an online storeredboxvape.com.
The group of companies was formed with very big ambitions to expand a network of "a better class" of vape stores across the UK.
Brand Philosophy
The Red Box enterprise was launched in March 2018 after the directors recognised a big gap in the retail vape market. Having already decided to create a quintessentially British vape brand with a focus on the sale of UK-manufactured liquids, their research quickly uncovered a distinct lack of quality among rivals on the high street. Too many stores appeared dark and intimidating, too heavily focused on younger vapers, and many not offering anything like the level of customer service excellence that Red Box was determined to provide. And so Red Box has created a vape store environment that is clean, friendly and non-judgemental, one that the team genuinely hopes will provide a warm welcome to the millions of adult smokers in the UK who are yet to find an alternative to tobacco but who may have been intimidated by the prospect of going into a vape store.
Facts & Figures
£1bnEstimated value of the UK vaping industry
£4.6bnProjected size of the UK vaping market by 2021
£111bnBenefit to the UK from people who have given up smoking as a result of vaping
2,000Approximate number of vaping outlets in the UK
95%Public Health England's estimate of the harm reduction of vaping compared with smoking tobacco products
7.6mSmokers still in the UK (according to the UK Vaping Industry Association)
2.9mVapers in the UK
20,000Public Health England's estimate of how many people could give up cigarettes every year thanks to vaping
1.5mVapers that have quit smoking altogether
5bnCigarettes not smoked due to switch to vaping
Contact:
For media enquiries, contact:
Phil Stubbs
E:phil.stubbs@redboxliquids.com
M: 07766 865355
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