Birmingham wellness company Vitality CBD has been bought out by a Canadian group for £10.2 million.
Vitality, which is based in Aston, manufactures and sells a range of products such as creams, oils and sweets made from cannabidiol, commonly known as CBD, a natural substance extracted from hemp.
It has been acquired by the European arm of Toronto-headquartered Yooma which also develops CBD and wellness products.
In the six months to July, Vitality, which has listings with household names such as Boots, Asda and Lloyds Pharmacy, had gross turnover of £1.6 million and EBITDA of approximately £300,000.
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Yooma said there were significant synergies to be had between the two companies and the focus would now be on Vitality CBD growing revenue and margin in the second half of 2021 and expanding distribution to other European and international markets.
This is the first acquisition since Yooma completed the listing of its shares on the AQSE Growth Market in London earlier this month.
Chairman Lorne Abony said: “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.
“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….and we look forward to working with the team at Vitality.”
Nikhil Nathwani, co-founder and managing director of Vitality CBD, added: “The whole 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.”