Irn Bru maker AG Barr snaps up independent brand Boost Drinks in all-cash deal worth up to £32m
- AG Barr paid £20m and agreed to pay another £12m depending on performance
- Leeds-based Boost Drinks was founded by Simon Gray in 2001
- Boost will continue to be led by Gray and will operate as a standalone business
Irn Bru maker AG Barr said Boost Drinks will continue to operate as a standalone company
Irn Bru and Rubicon maker AG Barr has snapped up energy drinks company Boost in a deal worth up to £32million.
The soft drinks giant has paid an initial £20million in cash for the popular brand, with an extra £12million agreed depending on revenue and profit performance over the next two years.
Founded in 2001 by Simon Gray, Boost sells a range of energy and sports protein drinks through independent retailers, convenience stores and petrol forecourts.
It raked in £42.1million in revenues and £1.9million in pre-tax profit in 2021.
The Leeds-based company will continue to be led by Gray and operate within the group as a standalone business unit.
AG Barr said the acquisition was in line with its strategy to enlarge its portfolio with ‘high growth and functional’ brands.
It added that there was ‘significant potential’ for further growth and development of Boost products.
Best known for the bright orange Scottish soft drink, AG Barr has a number of other well-known brands to its name, including Snapple tea, Strathmore water, pre-mixed cocktails Funkin as well as Xyber energy drinks.
Chief executive Roger White said: ‘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.
‘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.’
Simon Gray of Boost said he was ‘hugely excited’ about the deal, which will give Boost the capacity to ‘maintain our strong growth trajectory.’
AG Barr shares surged 3 per cent to 520p in morning trading on Monday. The stock has been resilient, trading just less than 1 per cent lower than a year ago.
Last month, the group boosted dividends after reporting surging profits as sales rose despite passing higher costs onto customers.