AG Barr acquires energy drink in deal worth up to £32m

Boost was founded in 2001 <i>(Image: AG Barr)</i>
Boost was founded in 2001 (Image: AG Barr)

SCOTTISH soft drinks giant AG Barr has made a big move into the energy drinks market with the acquisition of Boost Drinks in a deal worth up to £32 million.

The Irn-Bru maker has paid an initial £20m for Boost, which is being acquired from founder Simon Gray and wife Alison. An additional consideration of up to £12m will be payable, depending on the future revenue and profitability performance of Boost over a two-year period on completion of the deal.

Barr, which is funding the deal from cash reserves, noted that the Boost brand operates in the high-growth functional beverage category, spanning energy, sport, and protein, and has a strong market position in the UK independent retail channel.

It highlighted the potential to develop the Boost portfolio and to boost its scale and capability by exploring innovation, new product development, and routes to market, and operational infrastructure.

Mr Gray will continue to lead boost as a standalone business unit within AG Barr.

Roger White, chief executive of AG Barr, 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 AG 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.”

Mr Gray said: "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 A.G. BARR Group we will maintain our strong growth trajectory."

Barr previously had a long-term distribution deal with the Rockstar energy drink brand, which terminated around two years ago.

Shares in AG Barr were up 11p, or 2.2%, at 516p this morning.