Irish drinks firm VitHit acquired by UK company for €75m

All-cash deal will see founder Gary Lavin depart immediately

VitHit was founded in Dublin in 2001 by Gary Lavin.

Dublin-founded drinks company VitHit has been acquired by UK firm Nichols for €75m.

Producer of the Vimto cordial, Nichols acquired the firm in an all-cash deal that will see founder Gary Lavin walk away immediately.

Founded in 2001, VitHit produces a range of low-calorie, low-sugar, vitamin drinks which are sold in the UK, Ireland and 13 other markets.

Last year, it generated revenue of €26.5m and an adjusted operating profit of €4.2m

Nichols said it will retain VitHit's Dublin office and management team, some of whom will step away.

In a regulatory update, Nichols said the Acquisition is expected to be immediately earnings-enhancing and to generate returns comfortably in excess of the Group's cost of capital. The acquisition has been funded through cash on Nichols' balance sheet. 

On the deal, Gary Lavin said their ambition has always been to build a distinctive health and wellness drinks brand.

"We are proud of what the team has achieved and consider Nichols the ideal partner to support the next stage of the brand's development," he said.

Andrew Milne, Chief Executive Officer of Nichols, said VitHit has built strong market positions in both the UK and Ireland. "Nichols is ideally placed to accelerate VitHit's development through our commercial capabilities, customer relationships, route-to-market expertise and international infrastructure. A significant opportunity exists to expand distribution across the Group's existing customer base," he said.

"The acquisition is immediately earnings-enhancing and is expected to generate attractive returns for shareholders and strengthen our ability to deliver sustainable long-term growth. We are delighted to welcome the VITHIT team to Nichols and look forward to working together to realise the significant opportunities ahead."

The deal provides Nichols with a significant boost within the growing health and wellness segment, giving the opportunity to diversify their portfolio and revenue streams.

They said there are now meaningful opportunities to accelerate VitHit's current sales growth by leveraging their distribution capabilities, customer relationships, brand-building expertise and infrastructure.