ROBERT Graham, the 140 year old whisky and cigar retail company has been acquired by an entrepreneur in a seven figure deal.

And new owner Stephen Johnstone immediately set his sights on doubling its store portfolio to ten across the UK in the next three to five years.

The company, which was established in Glasgow in 1874, has its flagship store in the city's West George Street, as well as two shops in Edinburgh, one in Cambridge and one in London.

Mr Johnstone, who sees potential to develop the retailer's online sales, has targeted opening a store in Aberdeen and did not rule out further expansion in Glasgow, where the company moved from its original store in St Vincent Place to West George Street around a year ago.

He said: "The business already has an online business, but there is much more potential in that. And by opening more stores around the UK, it means we will be able to give more Robert Graham consumers the opportunity to buy the products a little bit more locally."

Mr Johnstone said accountancy firm Johnston Carmichael alerted him to the deal after returning to Scotland looking to buy a business in 2012. He had spent the previous decade south of the Border.

A whisky and cigar enthusiast, who has been collecting Scotch for 18 years, he spent ten years with electrical retailer Dixons, and was latterly sales and marketing director at kitchen and bathroom distributor PJH Group.

At PJH he was part of the team who staged a management buyout in 2005. It was then sold to Taiwan's Globe Union Corporation in 2007, before he left in 2012.

Mr Johnstone acquired Robert Graham from Ron Morrison and Mitchell Orchant, in a deal backed by Royal Bank of Scotland.

The previous owners has owned the business since acquiring it from the Graham family in the early 2000s.

Mr Orchant, who has separately built a successful cigar business, has rolled some of his equity over into a minority shareholding, and will continue to play a role in the company.

Mr Johnstone said the company generates sales on a 50/50 basis between whisky and cigars, with its Glasgow store boasting one of the biggest humidors in the UK.

Asked whether he intended to expand the company's own whisky range, which includes the Dancing Stag and Treasurer brands, he said: "The focus will be on continuing the brands we have.

"Our aim is to take the Robert Graham name along with our Dancing Stag and Treasurer brands to other parts of the UK.

"We are also looking to grow the international customer base through more investment in online marketing channels."

The company currently employs 15 staff, and Mr Johnstone noted their knowledge of whisky and cigars had been a key factor in persuading him to do the deal.

He sees scope to add more staff in marketing and administrative roles as the online offer develops, and retail staff as the stores become busier.

He said: "Even in Glasgow at the moment our sales are growing phenomenally well. At some point we will have to look at the amount of staff we have and how we deal with the growing business."

Lyn Calder, corporate finance director at Johnston Carmichael, who advised on the deal, said: "Stephen's plans to take this business forward are ambitious and exciting, underlining the entrepreneurial spirit which remains stronger than ever across Scotland."