Tooru walks away from proposed Mylky acquisition
Published: 02:30 29 May 2026 EDT
Tooru PLC (AIM:TOO, FRA:73N), the health and wellness group, has terminated its proposed acquisition of Mylky, a Dutch plant-based milk business, citing unfavourable market conditions and the level of debt the deal would have required.
The company said the acquisition structure involved significant new borrowing and, while the enlarged group's cash flow could have supported it, the board concluded that taking on additional leverage was inappropriate given current geopolitical uncertainty.
Tooru added that the time needed to arrange financing was exceeding the vendor's expectations, particularly as Mylky was fielding interest from other parties.
Using equity as an alternative funding route was ruled out on the grounds that it would have been too dilutive at the company's current valuation relative to the size of the deal.
The board also flagged concerns about exposure to European regulation, noting that the enlarged business would have been predominantly European, while Tooru's expertise is primarily UK-focused.
Scott Livingston, chief executive, said: "Whilst we believe that Mylky is an excellent business, current market conditions lead us to believe that now is not quite the right time to take on such a large European business that would have required a significant amount of additional gearing."
The company said it would continue to focus on organic growth from its existing operations while seeking more closely aligned acquisition targets.
