Vitality acquired by Canadian Yooma Wellness to develop its CBD portfolio in the United Kingdom | New
Vitality CBD has been acquired by Canadian wellness platform Yooma in a deal worth more than £ 10million.
The Birmingham-based company is one of the best-selling CBD brands in the UK, with its range of over 60 references, including oils and sprays, available at Boots, Tesco, Asda and Lloyds Pharmacy, as well as online at Amazon, Très, and Ocado.
It also produces a specially developed and formulated line of CBD skin care cosmetics.
Yooma, headquartered in Toronto, said the acquisition added a significant source of recurring revenue to the group through Vitality’s presence in traditional retailers and expanded the target customer base and distribution network for existing brands. focused on Europe, including MYO Plant Nutrition, which is already available in the like Holland & Barrett, Lloyds Pharmacy and Selfridges.
During the six-month period to June 30, 2021, Vitality generated revenue of £ 1.6 million and EBITDA of approximately £ 300,000.
Yooma added that there were “significant synergies” to be had and that by working with the group’s management team, Vitality would focus on revenue and margin growth in the second half of 2021, as well as on the ‘expansion of distribution to other European and international markets.
The transaction is the first since Yooma, which is listed on the Canadian Securities Exchange, finalized the double listing of its shares on the AQSE Growth Market in London on August 10, 2021 and is part of the buying strategy and group building.
Yooma Chairman Lorne Abony said completing the acquisition was the first step in a strategic plan to grow globally, significantly increase revenue, leverage the chain of integrated group sourcing to increase margins and expand the distribution of the existing product portfolio.
“This acquisition will help accelerate our growth by exporting these branded products to other Yooma jurisdictions and integrating into our MYO plant nutrition operations and distribution,” he added.
Vitality Co-Founder and CEO Nikhil Nathwani said, “The entire Vitality CBD team is delighted to join the Yooma Group. CBD is a growing industry not only in the UK but globally, and the acquisition positions us well to be able to continue to grow and grow the business. “
Pursuant to a sale and purchase agreement, Yooma acquired 100% of the issued shares of Vitality for a total consideration of up to £ 10.2million, with £ 4million at the close of the transaction. transaction, shares worth £ 4.2million and up to 2million cash or shares if income targets are met in fiscal 2022.
Vitality’s current management team has been retained and will continue to run the business on a day-to-day basis as it focuses on integration and expansion.