Nichols, the company behind Vimto, has purchased the healthy drinks brand VitHit for 75 million euros (£64 million). The brand was founded by former professional rugby player Gary Lavin.
Founder steps down
Lavin, who played for Leinster and Harlequins, will step down after the sale. He launched VitHit in Dublin 25 years ago as a healthier option compared to sugary sports drinks.
The brand has expanded to 13 overseas markets and generated revenues of over 26.5 million euros (£22.7 million) last year, with underlying profits of 4.1 million euros (£3.5 million).
Strategic milestone
London-listed Nichols described the acquisition as a “strategic milestone” and plans to accelerate VitHit’s sales growth.
Lavin said: “Since launching VitHit more than 25 years ago, our ambition has always been to build a distinctive health and wellness drinks brand with broad consumer appeal. 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 will keep VitHit’s Dublin office and said it would be “supported by its management team, some of whom will step away after a smooth transition, while the chairman and founder, Gary Lavin, will step down from day one”.
Growth plans
Nichols 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.”
He added: “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.”
