Boost Drinks announced this morning that they have been acquired by A.G Barr.
The IRN-BRU maker acquired Boost Drinks for an initial consideration of £20 million, funded from the group's cash reserves, and an additional consideration of up to £12 million, 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.
"We are delighted to inform you that as of 5th December 2022 Boost Drinks Holdings Limited has been acquired by A.G. Barr plc, the long established drinks company, well known for great brands such as IRN-BRU, Rubicon and Funkin," Simon Gray, chief executive of Boost Drinks, told in a communication to Asian Trader.
"This is a really exciting next step in Boost’s journey as AG Barr has a proven track record of acquiring and developing attractive brands. We are confident that together we will be even stronger positioned to take advantage of a number of exciting growth opportunities."
Gray said Boost will continue to be run independently from the office in Leeds, operating as a standalone supported business unit within the AG Barr Group.
"The Boost team under my leadership will remain exactly the same, as will the way we do business, and the products we offer," he added.
Roger White, A.G. Barr, chief executive, 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. 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."
For the year ended 31 December 2021 Boost's unaudited statutory revenue and profit before tax were £42.1 million and £1.9 million respectively with gross assets of £12.5 million.
