10th Aug 2026 09:16
(Alliance News) - Nichols PLC on Monday said the EUR75.0 million acquisition of soft drinks brand VitHit will be immediately earnings enhancing.
Founded in Dublin in 2001, VitHit generated revenue of EUR26.5 million in 2025, adjusted operating profit of EUR4.2 million and adjusted pretax profit of EUR4.1 million.
Merseyside, England-based soft drinks company Nichols, which owns Vimto, said VitHit is an "excellent strategic fit", adding the cash deal is consistent with its strategic plan to selectively invest in differentiated soft drinks brands.
The acquisition is expected to be immediately earnings enhancing, before one-off transaction costs of around GBP2.5 million, and generate returns comfortably in excess of the cost of capital.
Including the deal, Nichols expects to remain net cash positive at June 30, with strong cash generation rebuilding cash reserves over time.
A new revolving credit facility will be provided by NatWest Group PLC post-acquisition for working capital purposes.
On completion, Nichols said it will retain "substantial financial flexibility" and reaffirmed the recently improved dividend cover policy of 1.5 times.
Nichols said it remains committed to its existing capital allocation framework and dividend policy.
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."
Shares in Nichols traded up 1.4% at 1,054.03 pence each in London on Monday morning.
By Jeremy Cutler, Alliance News reporter
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