A.G. Barr has announced the acquisition of Boost Drinks Holdings Limited, producer of the Boost energy and functional drinks range, for an initial consideration of £20 million (€23.26 million), on a debt free cash free basis.
In a statement, A.G. Barr said that the acquisition was being funded entirely from its 'strong net cash position', with the Irn-Bru, Rubicon and Funkin owner taking over Boost from its founder Simon Gray and his wife Alison.
"Today's announcement is further evidence of our strategy to continue to grow the business through targeted acquisitions, with a particular focus on developing within high growth and functional categories," commented Roger White, chief executive, A.G. Barr.
The group said that it sees 'significant potential' for the expansion and development of the Boost drinks portfolio, including new product development, access to channel development opportunities, and operational infrastructure.
It also said that Gray will continue to lead the business from within A.G. Barr, as a standalone business unit.
'Developing Attractive Brands'
"Boost is one of the UK's most recognisable functional drinks brands, and we are delighted to welcome the team into the A.G. Barr Group," White added.
"With A.G. Barr's proven track record of acquiring and developing attractive brands such as Rubicon and Funkin, I look forward to working with Simon and the team to ensure Boost continues to grow and develop under our ownership."
For the year ended 31 December 2021, Boost's unaudited statutory revenue and profit before tax were £42.1 million (€48.9 million) and £1.9 million (€2.21 million) respectively with gross assets of £12.5 million (€14.5 million).