Supreme reports that it has entered into an agreement with an associated company of La Vape Professionelle Distribution (LVP), a leading French wholesaler of e-cigarettes and e-liquids, for the disposal of the intellectual property (IP) of T-Juice, inclusive of the Red Astaire brand. Supreme will receive an upfront payment of €4.5m (£3.97m) in respect of T-Juice brand IP, with the addition of income from consultancy services. The agreement ushers in a new strategic partnership in which Supreme will have exclusive manufacturing rights for T-Juice brands. We estimate that this will amount to at least €15.0m (£13.3m) in revenue over the coming five years, although the terms of the partnership – involving wholesale pricing arrangements – mean that our earnings outlook for the Group is unchanged. Under the terms of the agreement with LVP: • Supreme retains responsibility for flavour development and manufacturing, thus maintaining opportunities for supply chain synergies and improved margins. • Enjoys simplified access to European distribution and expansion, at reduced cost, with LVP as the single point of reference. • Has further cross-selling opportunities from the Supreme product portfolio. We raised our outlook on the basis of strong Interim results and the subsequent Trading Update added evidence of continuing positive momentum supporting our outlook and our Fair Value of 190p indicative of a FY24 EV/EBITDA of 9.0x.