Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Float windfall for Tetley Tea folk

Andre Yates
Wednesday 13 May 1998 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

TETLEY, the group that bought us the Tetley Tea folk and round tea bags, yesterday announced plans for a stock market flotation. Tetley, which makes Britain's favourite cuppa and is the second largest tea producer in the world, is expected to be valued at pounds 400m.

The flotation will give a huge windfall to Tetley's board and the 250 managers that together own more than a fifth of the company.

Leon Allen, Tetley's chief executive, and Roger Price, its finance director, will become tea millionaires many times over after this summer's flotation.

The two executives bought their 8 per cent stake in the group for just over pounds 500,000 when they led a management buyout of Tetley from Allied Domecq in 1995 for just under pounds 200m. When the group reaches the market that stake could be worth more than pounds 20m.

The new funds will be used to develop new products, such as expanding production for the group's new drawstring teabag, designed to prevent annoying drips. Tetley will use its new listing to give it the financial firepower to look at tea and coffee acquisitions.

Tetley has become famous for its TV campaign featuring characters such as Sidney and Gaffer supping their favourite brew. The introduction of the round tea bag in 1991 saw the group rise into the number one spot in the UK tea market.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in