Nichols has acquired functional-drinks brand VITHIT for €75m, approximately £64m, using cash from its balance sheet as the Vimto owner expands further into health and wellness beverages.
The AIM-listed soft drinks group has bought 100% of VITHIT Limited and its subsidiaries on a debt-free, cash-free basis. Nichols expects the transaction to increase earnings immediately and to support earnings per share and dividend per share from the 2027 financial year onwards.
VITHIT was founded in Dublin in 2001 and produces low-calorie, low-sugar drinks containing vitamins and other functional ingredients. Its portfolio includes bottled ready-to-drink beverages, sparkling cans, and effervescent products.
The brand has established positions in the UK and Ireland and distribution across another 13 international markets, giving Nichols an existing commercial platform rather than an early-stage product requiring distribution from scratch.
VITHIT generated revenue of €26.5m in the year to 31 December 2025, alongside adjusted operating profit of €4.2m and adjusted pre-tax profit of €4.1m. Revenue has grown by more than 90% since 2021, equivalent to a three-year compound annual growth rate of around 9.5%.
Nichols expects annual synergies of more than €1m from the acquisition. The group plans to use its existing relationships with retailers, distribution infrastructure, brand-building capability, and international operating model to increase VITHIT’s reach while retaining the acquired company’s asset-light structure.
Chief executive Andrew Milne said VITHIT “perfectly fits the acquisition profile we have been looking for.”
The strategic case rests partly on diversification. Nichols has built substantial international recognition around Vimto, while VITHIT gives the group a second established brand positioned in a different part of the soft drinks market.
The transaction is being funded without acquisition debt. Nichols said it remains net cash positive on a pro-forma basis at 30 June following completion, although NatWest will provide a new revolving credit facility for working-capital purposes.
The company has also reaffirmed its dividend-cover policy of 1.5 times. Funding the transaction with existing cash reduces financing risk at completion, but increases the importance of generating returns above what the capital could otherwise have produced while remaining on the balance sheet.
Nichols said it expects the acquisition to generate returns comfortably above its cost of capital. Delivery will depend on sustaining VITHIT’s current growth, securing the anticipated synergies, and expanding distribution without adding costs at the same pace.
The deal also changes the group’s exposure to consumer demand. Functional beverages sit between traditional soft drinks and products marketed around hydration, vitamins, energy, or other specific benefits.
The category has attracted both established drinks groups and specialist brands, increasing competition for supermarket shelf space, convenience channels, foodservice listings, and consumer attention. Scale can help with distribution and marketing, but established category competitors also have significant resources.
VITHIT’s existing presence in grocery, convenience, foodservice, and specialist retail gives Nichols a base from which to expand. The integration challenge is to increase the brand’s reach without weakening the positioning that supported its existing growth.
Nichols intends to retain VITHIT’s Dublin office and will be supported by members of the management team during the transition. Founder and chairman Gary Lavin is stepping down from the business from completion, while some members of management are expected to leave following a transition period.
The acquisition therefore combines commercial integration with a leadership handover at a business that has been founder-led for more than two decades. Continuity around customer relationships, product development, and internal knowledge will be important while the new owner introduces its wider infrastructure.
Nichols has identified domestic and international expansion as sources of value. In the UK, its existing customer relationships could give VITHIT access to a broader distribution base. Internationally, the group can use routes to market already developed around its existing brands, potentially reducing the cost and complexity of entering additional territories.
The €75m price is a substantial commitment relative to VITHIT’s current earnings, placing execution behind the strategic rationale. Nichols is acquiring an already profitable brand rather than funding a turnaround, but future value will depend on whether distribution gains and operational efficiencies can be delivered while maintaining growth.
The transaction gives Nichols a materially broader drinks portfolio from completion. It also gives the company a clear test of whether the international distribution capabilities built around Vimto can be transferred successfully to a second major brand.
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