Nichols PLC
10 August 2026
10 August 2026
(the "Company" or the "Group")
Earnings enhancing acquisition of VITHIT, a market-leading functional soft drinks brand in an attractive high-growth category with substantial expansion opportunities
Nichols plc (AIM: NICL), the diversified soft drinks group, is delighted to announce that it has acquired 100% of the issued share capital of VITHIT Limited and its subsidiaries ("VITHIT") for a total cash consideration of €75.0 million (approximately £64 million) on a debt-free, cash-free basis (the "Acquisition").
VITHIT is an excellent strategic fit for Nichols given its leading market positions in a structurally attractive soft drinks sub-category, complementary asset-light operating model, established profitability and significant growth opportunities. The Acquisition is expected to be immediately earnings enhancing1.
About VITHIT
Founded in Dublin in 2001, VITHIT is a category-leading functional drinks brand offering a portfolio of low-calorie, low-sugar beverages fortified with vitamins and functional ingredients. VITHIT's products offer 100% of the Recommended Daily Allowance of 8 essential vitamins through a portfolio that spans bottled ready-to-drink beverages, sparkling cans and effervescent products, serving a range of health and wellness consumption occasions.
The business has established market-leading positions in the UK and Ireland together with a presence across 13 other international markets. In the UK and Ireland, it has strong and diversified customer relationships across grocery, convenience, foodservice and specialist retail channels. For the financial year ended 31 December 2025, VITHIT generated revenue of €26.5 million (representing a 3-year CAGR c. 9.5% with over 90% sales growth since FY21), an adjusted operating profit of €4.2 million and adjusted PBT of €4.1 million. Further financial information on VITHIT is provided below.
Strategic Rationale and value creation opportunity
The acquisition of VITHIT represents a significant strategic milestone for Nichols and is consistent with the Group's strategic plan to selectively invest in differentiated soft drinks brands that strengthen its UK Packaged business and provide exposure to attractive growth categories.
Nichols will retain VITHIT's Dublin office, and we will 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.
VITHIT provides Nichols with:
|
· |
A considerably strengthened position within the significant and growing health and wellness segment of the soft drinks market. |
|
· |
A leading brand with established market positions in the UK and Ireland. |
|
· |
A highly complementary, asset-light operating model supporting synergies of more than €1 million per annum and a clear integration plan. |
|
· |
Meaningful opportunities to accelerate VITHIT's current sales growth by leveraging Nichols' distribution capabilities, strong customer relationships, brand-building expertise and infrastructure. |
|
· |
Further diversification of the Group's portfolio and revenue streams. |
The Acquisition is expected to be immediately earnings enhancing and to generate returns comfortably in excess of the Group's cost of capital.
The Board expects the acquisition will create long-term shareholder value through a combination of accelerated UK distribution gains, enhanced penetration within key retail customers, increased brand investment, procurement and operational efficiencies and leveraging of existing Group infrastructure and capabilities. The Board also sees an opportunity to accelerate VITHIT's international growth by leveraging Nichols' proven international operating model.
Funding
The Acquisition has been funded through cash on Nichols' balance sheet. Proforma for the acquisition, the Group remains net cash positive at 30 June 2026 and with the Group's strong cash generation will rebuild cash reserves over time. A new revolving credit facility will be provided by NatWest post-acquisition for working capital purposes.
Following completion, Nichols will retain substantial financial flexibility and reaffirms the recently improved dividend cover policy of 1.5x.
The Board remains committed to its existing capital allocation framework and dividend policy. Given the Acquisition is earnings accretive, it will enhance EPS and therefore DPS from FY27 onwards.
Andrew Milne, Chief Executive Officer of Nichols plc, commented:
"We are delighted to announce the acquisition of VITHIT - an outstanding brand with a differentiated product operating 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.
The brand has built strong market positions in both the UK and Ireland, supported by a differentiated consumer proposition, high levels of customer loyalty and - above all - a great tasting portfolio of functional soft drinks. 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.
The acquisition is immediately earnings enhancing and is expected to generate attractive returns for shareholders and strengthen our ability to deliver sustainable long-term growth. We are delighted to welcome the VITHIT team to Nichols and look forward to working together to realise the significant opportunities ahead."
Gary Lavin, Founder of VITHIT, commented:
"Since launching VITHIT more than twenty-five 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 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."
Financial Information2
For the financial year ended 31 December 2025, VITHIT generated:
|
· |
FY25 Revenue €26.5m (c. £22.8m) |
|
· |
3-year CAGR c. 9.5% with over 90% sales growth since FY21 |
|
· |
Adjusted Operating Profit €4.2m (c. £3.6m) |
|
· |
Adjusted Operating Profit Margin 15.8% |
|
· |
Adjusted PBT of €4.1 million (PBT of €3.6 million or c. £3.1m) |
|
· |
Effective tax rate of c.20% |
|
· |
Net assets of €7.7 million (c. £6.6m) |
Analyst presentation
The Company will hold a presentation for sell-side analysts at 8am on Monday 10th August 2026. To register your interest, please email nichols@hudsonsandler.com.
1 VITHIT is expected to be immediately earnings enhancing before one-off transaction costs of approximately £2.5 million. The purchase price allocation exercise required under IFRS3 has not yet been completed and an update will be provided at year end.
2 Financial metrics per the Audited Consolidated Financial Statements of Vit Hit Limited for the financial year ended 31 December 2025 and the Group Information memorandum.
Contacts
|
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
ENDRNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.