Tooru PLC (AIM:TOO, FRA:73N), the health and wellness company, has agreed in principle to acquire 100% of Mylky BV, a Dutch e-commerce business that sells small home appliances enabling consumers to make their own plant-based milks.
The £12 million purchase price comprises a £6 million cash element funded from existing resources and new debt, a £3 million loan note carrying a 10% annual coupon over a three-year term.
And it will hand over £3 million in newly issued shares, representing between 10% and 15% of the enlarged group, implying a value for Tooru of approximately £17 million.
Mylky, which was founded in early 2024, is expected by its management to have generated revenue of €7.5 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of €2.5 million in 2025 on an unaudited basis.
Trading in the first three months of 2026 is already ahead of budget, with the last 12 months to 31 March 2026 expected to show revenue of €9 million and EBITDA of €3.1 million.
The business operates across eight European countries, with its largest markets being Germany, France and Switzerland, and has a customer base of more than 70,000.
Tooru said the acquisition is complementary to its existing portfolio of brands, which includes gluten-free specialist Juvela, oat-based brand OAF and protein snack maker Pulsin, and would strengthen its position in the "free from" sector.
The company said it sees further growth potential in existing markets as well as new ones, including the UK, where it said consumer switching from dairy to plant-based alternatives is accelerating.
Tooru chief executive Scott Livingston described the deal as "the first step in the implementation of our stated buy and build strategy" and said the acquisition would "enhance and add scale to the Tooru group."
Martin Sundberg, chief executive of Mylky, said his team had focused "from day one" on building a brand that empowers consumers to make more conscious food choices and described Tooru as "an excellent strategic fit" for the business's next phase.
Tooru said it intends to finance the transaction using an institutional debt provider and has had preliminary discussions with a number of lenders, drawing on its previous experience securing a Shawbrook Bank facility for the Juvela acquisition.
The Mylky management team, led by Sundberg, is expected to join Tooru's senior management following completion.
Completion remains subject to satisfactory due diligence, financing, definitive documentation and shareholder approval, and Tooru has been granted a three-month exclusivity period.