Yooma Wellness acquires Vitality CBD, UK market leader
Yooma Wellness, a vertically integrated global wellness platform that develops and markets a portfolio of CBD and wellness brands, has acquired UK market leader Vitality CBD Limited.
WHO: Vitality CBD is the most stocked CBD brand in the UK, with products distributed through national retailers and e-commerce retailers such as Amazon, Very and Ocado. The Vitality CBD product portfolio has over 60 references, including oils and sprays in a wide range of flavors and strengths, edibles and a specially developed and formulated line of cannabinoid skin care cosmetics ( CBD).
Yooma Wellness’s mission is to build a global leader in the marketing, distribution and sale of wellness products, including hemp seed oil and ingredients derived from hemp and CBD. blend of wellness products through subsidiaries in China, Japan and the United States. Yooma has assembled an international team of multicultural industry professionals with extensive experience in digital marketing, e-commerce and social media in the EU, North America and Pan-Asian region, with particular depth. in the Chinese e-commerce market.
WHY: The deal is part of Yooma’s buy and build strategy to create the world’s largest CBD and wellness business. The acquisition adds a significant source of recurring revenue to Yooma and its subsidiaries through the distribution of Vitality through major retail outlets such as Boots, Lloyds Pharmacy, Tesco and ASDA, as well as the expansion of the target clientele of Yooma and the distribution network for its existing network focused on Europe. brands, including MYO Plant Nutrition.
IN THEIR OWN WORDS: “Completing the acquisition of Vitality is the first step in the strategic plan the company presented to investors at the time of our UK funding and dual listing: to buy and build companies globally, focusing on the substantial increase in the company’s revenue, leveraging Yooma’s integrated supply chain to drive margin growth and expand the distribution of the existing product portfolio, ”said Lorne Abony, president of Yooma. “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. Vitality is a market leader in the UK with a presence in major retail outlets such as Boots, ASDA and Lloyds Pharmacy and we look forward to working with the Vitality team. “
Nikhil Nathwani, Co-Founder and Managing Director, commented on the acquisition: “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 develop and grow the business. “
- Yooma Wellness acquired Vitality CBD Limited in a transaction valued at £ 10.2million through the company’s wholly owned subsidiary, Yooma Europe Limited.
- Pursuant to a sale and purchase agreement, Yooma Wellness acquired 100% of the issued shares of Vitality. Yooma will pay £ 4million at closing, subject to agreed working capital adjustments and up to £ 2million of cash or equity consideration and subject to the achievement of income targets by Vitality for fiscal year 2022.
- During the six-month period ended June 30, 2021, Vitality achieved gross sales of £ 1.6million and EBITDA of approximately £ 0.3million. The company plans to capitalize on the synergies of the collaboration with Yooma and focus on growing revenues and margins throughout 2021, as well as expanding distribution into other European and international markets.
- This is Yooma’s first transaction since the double listing of its shares on the AQSE Growth Market in London in August.
- In March 2021, Yooma Wellness acquired the portfolio of wellness brands from EMMAC Life Sciences Group, including Blossom, MYO, Hello Joya and What the Hemp.