Vimto owner Nichols has acquired functional drinks brand VITHIT for €75m (£64m).

The soft drinks group has bought 100 per cent of the Dublin-founded business on a debt-free, cash-free basis, with the deal funded from cash on its balance sheet.

Nichols said the acquisition would be immediately earnings enhancing and is expected to deliver annual synergies of more than €1m.

Founded in 2001, VITHIT produces a range of low-calorie, low-sugar drinks fortified with vitamins and functional ingredients across bottled, canned and effervescent formats.

The brand has established leading positions in the UK and Ireland and is also sold across 13 other international markets, spanning grocery, convenience, foodservice and specialist retail.

For the year to 31 December 2025, VITHIT generated revenue of €26.5m, adjusted operating profit of €4.2m and adjusted pre-tax profit of €4.1m.

Sales have grown by more than 90% since 2021, representing a three-year compound annual growth rate of around 9.5 per cent.

Nichols said the deal would give it greater exposure to the health and wellness segment of the soft drinks market, while creating opportunities to expand VITHIT’s distribution through its existing retail relationships and international network.

The group also expects to generate efficiencies across procurement, operations and infrastructure, alongside increased investment in the brand.

VITHIT will retain its Dublin office, while members of its management team will remain with the business during the integration. Founder and chairman Gary Lavin will step down following completion.

Nichols chief executive Andrew Milne said: “We are delighted to announce the acquisition of VITHIT – an outstanding brand with a differentiated product operating in a rapidly growing soft drinks category.

“Nichols is ideally placed to accelerate VITHIT’s development through our commercial capabilities, customer relationships, route-to-market expertise and international infrastructure.”

He added that there was a “significant opportunity” to expand the brand’s distribution across Nichols’ existing customer base.

Lavin said Nichols was the “ideal partner” to support VITHIT’s next stage of growth, pointing to the group’s brand-building expertise and commercial capabilities.

Nichols said it would remain net cash positive following the acquisition and has secured a new revolving credit facility from NatWest for working capital purposes.

The business also reaffirmed its dividend policy and said the acquisition was expected to enhance earnings per share and dividends per share from its 2027 financial year.

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