Iconic British tea brand Typhoo has been saved in a massive deal after falling into administration last month.

The 120-year-old company has been sold to the vape giant Supreme in a deal worth more than £10 million.

Supreme is looking to expand its business away from vaping ahead of a government crackdown on disposable vapes.

The company also purchased the soft drinks business Clearly Drinks earlier this year.

Iconic British tea brand Typhoo saved in massive deal worth more than £10 million

Supreme said in a statement: "Supreme is pleased to announce the acquisition of the trade and selected assets of Typhoo Tea Limited for a total cash consideration of £ 10.2 million out of administration.

"The deal includes Typhoo Tea’s stock and trade debtors with a book value of £7.5million."

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Sandy Chadha, chief executive of Supreme, said: “The acquisition of Typhoo Tea marks a significant step in our broader diversification strategy and brings one of the most iconic UK consumer brands into the Supreme family.

"I believe Typhoo Tea will thrive under our ownership, further benefiting from Supreme’s significant market reach and successful track record in creating brand loyalty, making us an ideal fit for this business.

“Having established our soft drinks division earlier in the year, we believe the addition of Typhoo Tea and its highly complementary blend of great value and premium tea brands, creates tangible cross sell and product innovation opportunities in the near-term, alongside avenues into credible UK retailers that Supreme has been looking to partner with.”