British soft drinks company Nichols plc has acquired VITHIT, an Irish functional beverage brand, for €75 million (about £64 million) in an all-cash deal.
VITHIT brings low-sugar, vitamin-fortified drinks to Nichols’ portfolio
The Dublin-based company, founded in 2001, sells bottled and canned drinks that deliver 100% of the recommended daily allowance of eight essential vitamins. Its products are low in sugar and calories, targeting health-conscious consumers across grocery, convenience, and foodservice channels.
VITHIT has established market-leading positions in the UK and Ireland together with a presence across 13 other international markets. Last year, it reported €26.5 million in revenue—a 9.5% compound annual growth rate over three years—and €4.2 million in adjusted operating profit.
Nichols, best known for its Vimto brand, said the acquisition aligns with its strategy to expand into higher-growth segments of the soft drinks market. The deal is expected to boost earnings immediately and generate returns above the company’s cost of capital.
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Founder exits as Nichols takes full control
Gary Lavin, VITHIT’s founder and chairman, will step down on completion of the deal. Some members of the management team will leave after a transition period, while others will remain to support the integration.
Nichols plans to retain VITHIT’s Dublin office and leverage its own distribution network to accelerate the brand’s growth. The company sees opportunities to expand VITHIT’s reach within existing retail customers and strengthen its position in international markets.
Synergies of more than €1 million per year are expected, driven by shared procurement, operational efficiencies, and Nichols’ infrastructure. The deal was funded from Nichols’ cash reserves, leaving the company net cash positive and maintaining its dividend policy.
For consumers, the acquisition could mean wider availability of VITHIT’s vitamin-enriched drinks in supermarkets and convenience stores. The brand’s focus on low-sugar, functional beverages fits a growing demand for healthier alternatives to traditional soft drinks, though its long-term success will depend on how well Nichols can scale the product without diluting its appeal.
