Chinese speciality tea retailer Urban Tea has completed the acquisition of 51% equity interest in Hunan 39 PU Tea.

Financial details of the deal have not been disclosed.

Urban Tea CEO Long Yi said: “The acquisition of 39 PU Tea is an important strategic step of expanding our tea business operations and diversifying our sales channels. It will also help provide the consistent supplies of tea for our corporate brand stores of Your Ladyship Tea and Buoyance Manor’

“The acquisition will also improve and support the company’s existing business line of milk tea and bakery products, the brand’s marketing, personnel training and store operation.

“By centralising the kitchen production management, warehousing and distribution system, the company expects to have a solid foundation to establish an enhanced overall production chain for rapid future growth.”

Urban Tea also concluded a set of variable interest entity agreements with 39 PU Tea through its foreign-owned subsidiary Mingyuntang (Shanghai) Tea.

The deal was first announced in August when Urban Tea and its wholly-owned subsidiary MingYun Tang (Shanghai) Tea (WOFE) signed a letter of intent (LoI) to acquire 39 PU Tea.

Urban Tea said that the consideration for the acquisition was subject to certain operational milestones achieved by 39 PU Tea.

39 PU Tea managing director De’an Hu said: “It is a great honour for 39 PU Tea to be a part of the public company Urban Tea. The completion of this acquisition will strengthen our brand recognition and our ability to drive growth together with Urban Tea.

“As 39 PU Tea’s management, we are confident in Urban Tea’s strategic planning and will support our business partner with continuous contributions.”

Based in Hunan, China, 39 PU Tea is involved in tea distribution, cultural heritage projects and product and research development.