UK soft drinks group Nichols plc announced the purchase of Dublin‑founded functional beverage maker VITHIT for a cash sum of €75 million, roughly £64 million, marking a decisive step into the health‑focused drinks segment.
Deal details and immediate impact
The transaction, completed on a debt‑free, cash‑free basis, transfers 100 % of VITHIT Limited’s issued share capital to Nichols. The acquisition is expected to boost Nichols’ earnings right away, according to the company’s statement.
VITHIT, established in 2001, has built a portfolio of low‑calorie, low‑sugar drinks fortified with vitamins and functional ingredients. Its range spans bottled ready‑to‑drink cans, sparkling cans and effervescent powders, each delivering the full daily recommended intake of eight essential vitamins.
Revenue for the year ending 31 December 2025 reached €26.5 million, reflecting a three‑year compound annual growth rate of about 9.5 % and more than 90 % sales growth since 2021. Adjusted operating profit stood at €4.2 million, while adjusted profit before tax was €4.1 million.
Strategic fit and future plans
Nichols highlighted VITHIT’s asset‑light operating model as a complement to its own structure, projecting over €1 million in annual synergies. The group plans to leverage its distribution network, existing customer relationships and international infrastructure to accelerate VITHIT’s expansion, especially within its current client base.
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The Dublin office will remain operational, and members of VITHIT’s management team will stay on board through the transition. Founder and chairman Gary Lavin will step down once the deal closes.
Chief executive Andrew Milne described VITHIT as “an outstanding brand with a differentiated product operating in a rapidly growing soft drinks category.” He added that the brand’s market position, profitability and growth potential align with Nichols’ acquisition criteria.
Funding for the purchase came from cash on Nichols’ balance sheet, leaving the company net‑cash positive. A new revolving credit facility from NatWest will support working capital needs.
From a cautious viewpoint, the integration could face challenges typical of cross‑border acquisitions, such as aligning supply chains and preserving brand identity while scaling operations. If Nichols successfully balances these factors, the combined entity may capture a larger share of the burgeoning functional beverage market, though the timeline for realizing synergies remains uncertain.
Lavin expressed pride in VITHIT’s achievements over its 25‑year history and said the brand sees Nichols as the right partner for its next growth phase. Nichols expects the deal to diversify its product mix and to lift earnings per share and dividend per share beginning in the 2027 financial year.
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