Former professional rugby player Gary Lavin is in line for a payday of around £43 million after selling the drinks business he founded to the maker of Vimto.
Lavin, who played for Leinster and Harlequins, has agreed to sell health drinks brand VitHit to soft drinks company Nichols for £64 million. He came up with the idea for VitHit while recovering from a rugby injury more than 25 years ago.
VitHit's growth and market presence
The low-calorie, low-sugar drink is made from a blend of teas, juices, water and vitamins and claims to provide 100 per cent of the recommended daily allowance of eight vitamins. VitHit now sells its products in 15 markets and generates annual revenues of around £22.8m, with around 40 per cent of sales coming from the Republic of Ireland and another 40 per cent from the UK.
Lavin, who was chairman and owned more than 70 per cent of the business, is stepping away from the company following the takeover.
Deal comments and future plans
"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," Lavin said. "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 chief executive Andrew Milne added: "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. 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."
From rugby dreams to business success
Lavin always dreamed of playing for Ireland and was left crushed when serious injury ruined his plan and career at just 23. "There is no such thing as a happy injury, but I have to say things turned out pretty well," Lavin said at an event in 2019. "Nevertheless, as a rugby player in my early twenties, all I wanted was to play rugby for Ireland and become a superstar. While I might only have ever been a journeyman, the inherent confidence of the rugby player within was shattered."
The deal, which is being funded from Nichols' existing cash reserves, is expected to immediately boost the company's earnings.
Nichols and its portfolio
Nichols is best known for Vimto, which was invented in 1908 by John Noel Nichols, a wholesaler of herbs, spices and medicines who wanted to create a herbal tonic offering "vim and vigour". The drink is now sold in more than 60 countries and has become particularly popular in parts of the Middle East, where it has been consumed to break the Ramadan fast for more than a century.
Nichols also owns or licenses brands including Sunkist, Levi Roots and Slush Puppie. The company has increasingly targeted health-conscious consumers in recent years. It partnered with Myprotein in 2021 and last year announced a deal with supplements business Applied Nutrition, leading to the launch of Vimto-flavoured electrolyte tablets and energy gels. A new range of Vimto-flavoured protein waters with Myprotein is also due to launch in September.
