Canada-based wellness product giant Yooma Wellness has acquired UK cannabidiol (CBD) market leader Vitality CBD in a transaction valued up to £10.2 million, reports stated on Monday (30).
The move will see Yooma Wellness acquire the Birmingham-based firm via its wholly-owned subsidiary Yooma Europe Limited, taking on Vitality CBD’s entire portfolio of oils, sprays, skincare and edibles- which are all available with UK retailers including Boots, Tesco, Alda and Lloyds Pharmacy as well as online with Amazon and Ocado.
The acquisition is part of Yooma’s stated “buy and build” strategy and will add a significant source of recurring revenue, reports said, citing Vitality CBD’s reported gross turnover of £1.6m in the six months to June 30, 2021.
Yooma Wellness is in the early stages of implementing its plan to become vertically integrated with the marketing, distribution and sale of wellness products, including hemp seed oil and hemp-derived cannabinoid ingredients, stated media reports.
“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,” reports quoted Yooma’s chairman Lorne Abony.
Vitality CBD’s co-founder and MD Nikhil Nathwani acknowledged the acquisition saying that their team is “excited” to be joining Yooma Group, as per media reports.
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