Teavana, a US-based specialty retailer of loose-leaf teas, tea related merchandise and beverages, has agreed to take over the assets of Teaopia, a mall-based specialty tea retailer in Canada, for an all-cash transaction of $26.9m, subject to post-closing adjustments.

Teaopia operates 46 company outlets in shopping mall locations in Canada and online via company website, www.teaopia.ca.

The Canadian specialty tea retailer has registered C$17m ($16.98m) in net sales for the year ended on 31 January 2012 and the company opened 12 new outlets during the period, taking the total number of company retail stores to 46.

Teavana chairman and chief executive officer Andrew Mack said the company is excited to increase its growth in Canada with the Teaopia acquisition.

"With this acquisition, we immediately establish a strong foothold in many of the best mall locations in Canada," Mack said.

"Teaopia’s prime mall locations, similar store branding and focus on premium loose-leaf teas, and great store employees and managers all make this opportunity a natural fit for us.

"As we integrate and rebrand the Teaopia stores, we look forward to leveraging our shared best practices and welcoming the Teaopia employees into the Teavana family."

Teaopia founder and president David Bellisario said he will look forward to working with Andrew and his team on this transition and watching the Teaopia stores thrive as part of Teavana.

Teavana retails around 100 variants of premium loose-leaf teas, authentic artisanal teawares and other tea-related merchandise via more than 200 company outlets and online via company website.

The deal is likely to be closed in the second fiscal quarter subject to clearance from customary closing conditions.