Irn-Bru manufacturer AG Barr has announced the initial £20m acquisition of energy drinks company Boost, on a debt and cash free basis.
An additional sum of up to £12m dependent on future revenue and profitability performance of the Boost business over a two year period from completion will be payable in cash at the end of that period.
The acquisition, from Boost founder Simon Gray and his wife Alison, is entirely funded from the group’s net cash position.
Mr Gray and his wife founded the company in 2001 and it primarily operates in the high growth functional beverage category spanning energy, sport and protein, with a strong market position in the UK independent retail channel.
AG Barr says significant potential exists for further growth and development of the product portfolio as well as opportunities for Boost to leverage the group’s established scale and capability.
The business will continue to be led by founder Mr Gray while operating within the group as a standalone business unit.
For the year end December 31, 2021, Boost’s unaudited statutory revenue and profit before tax were £42.1m and £1.9m respectively with gross assets of £12.5m.
AG Barr’s CEO, 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 AG Barr Group. The Boost portfolio offers premium taste and performance at a competitive price, with a strong market position in the UK independent retail channel. 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.”
Founder and CEO of Boost Drinks Mr Gray added: “I’m hugely excited to embark on the next phase of Boost’s growth with AG Barr. Over the past 20 years Boost has proven its popularity with consumers who want great tasting, high performing functional drinks that offer great value for money and I am sure that as part of the AG Barr Group we will maintain our strong growth trajectory.”