Vimto manufacturer Nichols has acquired a 50% stake in Dayla Liquid Packing for £2.78m to boost its dispensed cold drinks operations.
Dayla has been a major supplier to Nichols dispensed soft drinks range Cabana for a number of years and also operates a premium juice manufacturing site. It recorded sales of £9.2m in the year to September.
Nichols also has the option of purchasing the remaining 50% stake in Dayla in 2011 or 2012.
“This deal gives our dispense systems operation direct access to the growing premium juice market and strengthens further the existing supply relationship between Cabana and Dayla,” said Nichols chairman John Nichols.
“We believe our combined capabilities will improve our market position both at home and overseas.”