IRISH DRINKS COMPANY VitHit has been sold for €75 million to the firm behind Vimto.

VitHit was founded in 2000 by former rugby player Gary Lavin.

It was this week acquired by Nichols, the firm behind Vimto, for €75 million.

As part of the deal, Nichols will retain VitHit’s Dublin office.

Nichols added that it will be “supported by its management team, some of whom will step away after a smooth transition, while the chair and founder, Gary Lavin, will step down from day one”.

In a post on LinkedIn, Lavin remarked that the “company I started in 2000 from a van is finally sold”.

He described Nichols as a “super bunch” and said the company will “give it the investment and distribution we’ve always craved”.

“It’s a great time for me, my wife and CMO Rachael, Troy my brother and CEO and all the VitHit team who fought so hard with us over the years,” Lavin added.

“We’ve had so many ups and downs. The highs are sky high, but the lows are pretty low.

“We’ve been skinned alive by corporations either ignoring our success or trying to replicate it, but that’s just spurred us on to punch back harder.

“We’ve had incredibly low staff turnover, as these great people always knew, their wins were theirs alone.”

Lavin also thanked Irish wholesaler BWG Foods, “who gave me my first break”.

He said VitHit is currently selling 40 million plus units per year, is the 7th biggest selling soft drink in Ireland, and the top vitamin drink in the UK.

He added that one of his “proudest achievements” is in having “never taking outside funding”.

“Entrepreneurs always think in the future tense, as we believe tomorrow, things will get better,” said Lavin.

“That day has now come, and I’m gonna try to live in the moment. Tomorrows come a bit fast these days.”

In a statement on Monday, Nichols said it was acquiring VitHit on a debt-free, cash-free basis.

It described VitHit as an “excellent strategic fit for Nichols given its leading market positions, established profitability and significant growth opportunities”.

Nichols CEO Andrew Milne announcing the acquisution Nichols Nichols

For the financial year ended on 31 December, VitHit generated revenue of €26.5 million, an adjusted operating profit of €4.2 million.

Nichols added that the acquisition of “represents a significant strategic milestone and is consistent with the Group’s strategic plan to selectively invest in differentiated soft drinks brands”.

Nichols said the acquisition will offer it a “considerably strengthened position within the significant and growing health and wellness segment of the soft drinks market”.

It further said that the acquisition is “expected to be immediately earnings enhancing and to generate returns comfortably in excess of the cost of capital”.

The acquisition was funded through cash on Nichols’ balance sheet.

Andrew Milne, CEO of Nichols, remarked that VitHit is “supported by high levels of customer loyalty and – above all – a great tasting portfolio of functional soft drinks”.

“We are delighted to welcome the VITHIT team to Nichols and look forward to working together to realise the significant opportunities ahead.”