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(Sharecast News) - Vimto maker Nichols said on Monday that it has bought VitHit, a maker of low-calorie, low-sugar drinks, for 75m in cash.
Founded in Dublin in 2001 by former rugby player Gary Lavin, VitHit offers a portfolio of beverages fortified with vitamins and functional ingredients. Nichols said the products offer 100% of the recommended daily allowance of eight essential vitamins through a portfolio that spans bottled ready-to-drink beverages, sparkling cans and effervescent products, serving "a range of health and wellness consumption occasions".
Nichols said VitHit is an "excellent" strategic, "given its leading market positions in a structurally attractive soft drinks sub-category, complementary asset-light operating model, established profitability and significant growth opportunities".
It added that the deal is expected to be immediately earnings enhancing and to generate returns comfortably in excess of the group's cost of capital.
For the year ended 31 December 2025, VitHit generated revenue of 26.5m, adjusted operating profit of 4.2m and adjusted pre-tax profit of 4.1m.
Vimto chief executive Andrew Milne said: "With its established market position, alignment with our asset-light operating model, proven profitability and significant headroom for growth, VitHit perfectly fits the acquisition profile we have been looking for and is fully aligned with our long-term growth strategy.
"The brand has built strong market positions in both the UK and Ireland, supported by a differentiated consumer proposition, high levels of customer loyalty and - above all - a great tasting portfolio of functional soft drinks. 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."
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