Shares in Tooru PLC (AIM:TOO, FRA:73N) rose 7% to 0.2p after the AIM-listed health and wellness company agreed in principle to acquire Mylky BV, a Dutch e-commerce business selling home appliances that allow consumers to make their own plant-based milks, for £12 million.
The consideration 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 issue £3 million in new shares, representing between 10% and 15% of the enlarged group, implying a value for Tooru of approximately £17 million.
Mylky, founded in early 2024, is expected by its management to have generated revenue of €7.5 million and EBITDA of €2.5 million in 2025 on an unaudited basis, 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 more than 70,000 customers.
Tooru said the deal complements its existing portfolio of brands, including gluten-free specialist Juvela, oat-based brand OAF and protein snack maker Pulsin, and would strengthen its position in the "free from" sector.
Chief executive Scott Livingston described the deal as "the first step in the implementation of our stated buy and build strategy."
Completion remains subject to due diligence, financing, definitive documentation and shareholder approval.