Global vertically integrated wellness platform Yooma Wellness announced that it has acquired UK-based Vitality CBD Limited for up to C$17.7 million through its wholly-owned subsidiary Yooma Europe Ltd.
The acquisition adds a significant source of recurring revenue to Yooma and its subsidiaries through Vitality’s presence at mainstream retail outlets such as Boots, Lloyds Pharmacy, Tesco and ASDA, as well as expanding Yooma’s target customer base and distribution network for its existing European-focused brands, including MYO Plant Nutrition.
This is Yooma’s first transaction since it completed the dual-listing of its shares on the AQSE Growth Market in London earlier this month and is part of the Company’s plan to build the world’s largest CBD and wellness business.
“Completing the acquisition of Vitality is the first step of the strategic plan the Company outlined to investors at the time of our UK financing and dual-listing – to buy and build companies globally, focused on materially increasing the Company’s top-line revenue, leveraging Yooma’s integrated supply chain to drive margin growth, and expanding distribution for the existing product portfolio,” said Yooma Chairman Lorne Abony.
“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 such as Boots, ASDA and Lloyds Pharmacy and we look forward to working with the team at Vitality.”
Nikhil Nathwani, Co-founder and Managing Director commented on the acquisition, “The whole Vitality CBD team is 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.”
In the six-month period ended June 30, 2021, Vitality had gross turnover of £1.6 million (CAD $2.78 million) and EBITDA of approximately £0.3 million (CAD $0.52 million). The company plans to capitalize on the synergies of working with Yooma and focus on growing revenue and margin throughout the rest of 2021, as well as expanding distribution to other European and international markets. – BusinessNewsCanada.com