Irish drinks company VitHit, owned by former rugby player Gary Lavin, has been acquired by British soft drinks firm Nichols for €75 million.
Nichols, the maker of Vimto, confirmed the acquisition this morning of VitHit, which was founded in 2001 by Lavin and recorded more than €26 million in sales last year.
The deal is being completed on a debt-free and cash-free basis.
The company said it would retain VitHit’s Dublin office, but chairman and founder Lavin has stepped away from the business following the deal. It expects annual synergies of more than €1 million a year from the deal.
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Lavin, who was a finalist in last year’s EY Entrepreneur of the Year awards, was the majority owner of the company. Members of his family also owned stakes in the business.
Lavin said he was proud of what he and the team has achieved over 25 years and considered Nichols “the ideal partner to support the next stage of the brand’s development”.
“Nichols brings proven brand-building expertise, strong customer relationships and significant commercial capabilities, while sharing our long-term approach to growth. We are excited about the opportunities this creates for VitHit, its colleagues, customers and consumers,” Lavin said.
Nichols chief executive Andrew Milne said VitHit was an ideal acquisition for the group as it sits in a rapidly growing soft drinks category.
“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.”
He added the brand has strong market positions in Britain and Ireland and there was a “significant opportunity” to expand its distribution.
An investor presentation from Nichols cited distribution opportunities through its relationships with the big British supermarket and retail groups and international expansion as avenues for growth for the Irish brand.
In the announcement confirming the deal, which was first reported by the Sunday Times, Nichols said VitHit had recorded 90 per cent sales growth since the end of 2021.
Last year, it booked group sales of €26.5 million and an adjusted operating profit of €4.2 million. It had net assets of €7.7 million.
Nichols, which was founded in 1908, said the VitHit deal would be immediately earnings-enhancing before one-off transaction costs of about £2.5 million (€2.9 million).
Nichols added that the acquisition has been funded through cash on its balance sheet and a new revolving credit facility will be put in place by NatWest following the deal to provide working capital for expansion.
