Global health and wellbeing platform Yooma Wellness Inc has completed its purchase of Birmingham-based Vitality CBD Limited for a total consideration of up to £10.2 million, via the company’s wholly owned subsidiary, Yooma Europe Limited.
Yooma, which develops and markets a portfolio of CBD and wellness brands, says the purchase will provide ‘a significant source of recurring revenue’ through Vitality’s presence at mainstream retail outlets including Boots, Tesco, Asda and Lloyds Pharmacy. It will also expand the target customer base and distribution network for the Yooma group’s existing European-focused brands, including plant nutrition platform MYO.
Commenting on the move, Nikhil Nathwani, Vitality CBD co-founder and MD, says: “The whole Vitality CBD team are excited to be joining the Yooma group. CBD is a growing industry not only in the UK but globally, and the acquisition positions us nicely to be able to continue to expand and grow the business.”
Yooma chairman Lorne Abony adds: “This acquisition will help accelerate our growth by exporting these branded products to other Yooma jurisdictions and integrating with our MYO Plant Nutrition operations and distribution. Vitality is a market leader in the UK with presence in major retail outlets … and we look forward to working with the team at Vitality.”
In the six-month period to 30 June 2021, Vitality had gross turnover of £1.6 million and EBITDA of approximately £300,000. The brand will focus on growing revenue and margin in the latter half of 2021 as well as expanding distribution to other European and international markets.