Blavod Black Vodka is in talks to acquire Extreme Beverage Company (EBC), The Times reported today. The deal is expected to be worth around £5m.

Blavod announced earlier this year that it was in initial talks to buy another spirits company but has never revealed who it was talking to.

Blavod is listed on the Alternative Investment Market and is also trying to raise around £8m in placing new shares. The funds will be used to market the enlarged group's brands.

The Extreme Beverage Company is one of Blavod's US rivals, and is 80% owned by Jeff Hopmayer, who founded the company two years ago. Hopmayer and the minority shareholders are thought to be taking new Blavod shares, while Hopmayer is expected to join the board of Blavod as a non-executive director.

Neither party was available for comment, according to The Times.