IRN BRU MAKERS GAIN A BOOST FOLLOWING NEW ACQUISITION
AG Barr, makers of Irn-Bru have bought energy drinks brand Boost in a deal worth up to £32m.
The acquisition includes 100% of Boost Drink’s issued share capital for an initial sum of £20m, with a further performance-linked payout of up to £12m dependent on future revenue and profitability performance of the Boost business over a two year period from completion, payable in cash at the end of that period.
The energy, sport and protein beverage producer was founded in 2001. Their management team, led by founder Simon Gray, will continue to lead the business, operating as a standalone business unit within Barr.
The deal brings with it an exclusive sales and distribution partnership with fruit drinks brand Rio.
In 2021, Leeds-based Boost reported revenue of £42.1m, with pre-tax tax profits of £1.9m.
Barr chief executive Roger White said the acquisition was “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”.
He added: “Boost is one of the UK’s most recognisable functional drinks brands, and we are delighted to welcome the team into the 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 our 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.”