LONDON: Nichols plc has acquired functional drinks brand VITHIT for €75 million (approximately £64 million) in a deal that expands the Vimto owner’s presence in the health and wellness segment.
The acquisition of the Dublin-based company, which generated €26.5 million in revenue for the year ended Dec. 31, 2025, is expected to be immediately earnings enhancing, Nichols said.
“We are delighted to announce the acquisition of VITHIT—an outstanding brand with a differentiated product operating in a rapidly growing soft drinks category,” Andrew Milne, chief executive officer of Nichols, said in a statement. “VITHIT perfectly fits the acquisition profile we have been looking for and is fully aligned with our long-term growth strategy.”
VITHIT, founded in 2001 by former Leinster rugby player Gary Lavin, offers low-calorie beverages fortified with vitamins and functional ingredients. The brand holds market-leading positions in the U.K. and Ireland and has a presence in 13 other international markets. Its portfolio includes bottled ready-to-drink beverages, sparkling cans and effervescent products.
The business generated adjusted operating profit of €4.2 million and adjusted profit before tax of €4.1 million in its most recent fiscal year. Revenue has grown more than 90% since fiscal 2021, with a three-year compound annual growth rate of approximately 9.5%, the company reported.
Nichols said it will retain VITHIT’s Dublin office and its management team, though some executives will depart after a transition. Lavin, the company’s founder and chairman, will step down immediately.
The acquisition was funded through cash on Nichols’ balance sheet. Pro forma for the deal, the group said it remains net cash positive as of June 30, 2026, and will rebuild cash reserves over time through strong cash generation. NatWest will provide a new revolving credit facility for working capital purposes post-acquisition.
The company reaffirmed its recently improved dividend cover policy of 1.5x and said the acquisition will enhance earnings per share and dividend per share from fiscal 2027 onward.
Nichols expects to realize synergies of more than €1 million per annum through its asset-light operating model and sees opportunities to accelerate VITHIT’s growth by leveraging its distribution capabilities, customer relationships and international infrastructure.
“Since launching VITHIT more than twenty-five years ago, our ambition has always been to build a distinctive health and wellness drinks brand with broad consumer appeal,” Lavin said. “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.”
Nichols, established in 1908, operates across three routes to market: U.K. Packaged, International Packaged and Out of Home. Its portfolio includes the Vimto brand, licensed brands including MyProtein, Levi Roots, ICEE and Sunkist, and now VITHIT. The group’s products are sold in more than 60 countries worldwide.
